Enhanced Capital Notes - final decision

OK, the last time I posted I was choosing between taking ECN or ECA for LLPF. I've made my choice, and I've.... sold LLPF at £686.50 and bought a similar amount of LLPC at 71.5p, then chosen ECA followed by ECN.

My reasoning is:

• LLPF might have qualified for ECA, in which case I would only have got £13.50 per share more than the current bid price.
• LLPF might not, in which case I would get Enhanced Capital Notes with a yield of about 14%, with the downside of conversion.

On the other hand with LLPC the possibilities are:

• It qualifies for ECA at 94p, in which case I take a quick 30% profit.
• It qualifies for ECNs with a yield of about 16.5% - if these equalize to the LLPF yield then that's a quick profit of 15%.
• It doesn't qualify for either, in which case I'm left with a yield of 10.1%, after accounting for 2 years of skipped dividends. But I'm not exposed to conversion downside. And there is the potential upside that if LLPC did not participate in the tender Lloyds may take pity and make a later offer - you can certainly imagine a lot of disgruntled retail holders.

I'm satisfied with this position and I've registered my choice of Option 4: ECA then ECN.