Royal Bank of Scotland 7.64% Fixed-to-Float Pfd

Here40=804>s an attractive Yield to Call opportunity that I wanted to show South=rn Trust Company. I've attached a still relevant Morgan Stan=ey note from earlier this year.

Details:

Royal Bank of Scotland 7.64% Fixed-to-Float Preferred Shares

RBS 7.64% Perpetual

Issuer:=C2 Royal Bk Scotland Grp Plc

Par Value: =C2 $1,000

S=curity Type: Preferred Stock

QDI/DRD Eligible=A0 Yes / Yes

Cumulative: Non-Cumulative

Rating: B1 / B+

Coupon (Details): =C2 7.64% to 9/30/2017; =hen US 3M Libor +232bp, resets Quarterly

=A0 =A0 =C2

Next Call Date: 9/30/2017, Quarterly thereafter=/u>

Maturity: =C2 =A0 Perpetual

<=>Net Pri=e: =C2 =A0 105.25

Current Yield: =C2 =A0 7.2589%

Yield to Next Call: =C2 4.6871%

Yes / Yes<=>:

Some of Morgan Stanley's highlights:

1.<=pan style="font:7.0pt "Times New Roman—> 40=A0 They fundamentally like the credit and this is one of the most =iquid and highest yielding legacy securities (old-style AT1s)

5 million

thought this was interesting a= it would yield foreign interest income please advise thank you

Richard Kahn
HBRK Associates Inc.

New York, NY 10022
tel 212-971-1306=/a>
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