24 Oct – 28 Oct 2016

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ASX-listed hybrids

 Trading margins in the hybrids market generally fell over the week and the median trading margin declined by 5bps to 3.89%.  Most moves were fairly moderate (ignoring the yield movements produced hybrids close to maturity) but some of the securities with larger ones included Bendigo CPS 2 (BENPE -39bps), Commonwealth Bank PERLS 6 (ASX code: CBAPC, -33bps) and Suncorp CPS 2 (ASX code: SUNPC, -24bps).

161024hybrids

* To first call date. Assumes BBSW unchanged. Includes franking credits, capital gain/loss.

According to some observers there is the odd opportunity to be had and Evans and Partners thinks there are some gains in various switches which take advantage of anomalies which arise from time to time.

ASX-LISTED HYBRIDS

COMPANYCODEHYBRID
TYPE
MATURITY
OR STEP-UP
DATE
MARGIN
INC FRANK
TRADING
MARGIN
∆ WEEKWEEK
CLOSE
YTM
Est**
AMP Capital NotesAMPPABasel III22/12/20215.10%3.89%-0.05%105.955.64%
ANZ Banking GroupANZPAMCPS II16/12/20163.10%5.30%0.90%99.937.05%
ANZ Banking GroupANZPCMCPS III28/09/20173.10%1.86%0.03%101.753.85%
ANZ Banking GroupANZPDMCPS III1/09/20213.40%3.95%0.06%98.555.94%
ANZ Banking GroupANZPECapital Note24/03/20223.25%4.08%0.05%96.706.07%
ANZ Banking GroupANZPFCapital Note24/03/20233.60%4.08%0.00%97.956.07%
ANZ Banking GroupANZPGBasel III20/03/20244.70%4.56%0.11%102.006.20%
Bendigo BankBENHBPerpetual21/10/20541.00%3.05%-0.02%67.504.80%
Bendigo BankBENPDMCPS III13/12/20175.00%3.21%-0.01%104.505.20%
Bendigo BankBENPEMCPS III30/11/20203.20%4.22%-0.39%98.486.21%
Bendigo BankBENPFMCPS III15/06/20214.00%4.30%-0.03%101.006.29%
Bank Of QueenslandBOQPDMCPS III16/04/20185.10%3.27%0.16%102.775.26%
CBA PERLS 6CBAPCMCPS III15/12/20183.80%2.93%-0.33%102.364.68%
CBA PERLS 7CBAPDMCPS III15/12/20222.80%4.31%0.01%92.956.06%
CBA PERLS 8CBAPEMCPS IIII15/10/20215.20%3.88%0.08%106.355.63%
ChallengerCGFPACapital Note25/05/20203.40%4.11%0.10%98.615.86%
IAGIAGPCMCPS III1/05/20174.00%1.72%1.09%101.023.71%
IAG RESIANGReset pref16/12/20194.00%3.86%-0.01%101.055.61%
Macquarie BankMBLHBIncome SecPerpetual1.70%4.29%0.04%64.356.04%
Macquarie BankMBLPACapital Note III24/03/20203.30%3.69%-0.12%98.955.68%
Macquarie GroupMQGPACapital Note III19/06/20184.00%3.56%-0.16%103.105.55%
Macquarie GroupMQGPBCapital Note III17/03/20215.15%4.22%-0.02%104.906.21%
Multiplex SITESMXUPAPerp'l PrefPerpetual3.90%6.77%0.08%69.908.52%
Nat Aust BankNABHAIncome SecPerpetual1.25%3.41%-0.04%66.505.16%
Nat Aust BankNABPAMCPS III20/03/20193.20%3.30%0.07%100.255.05%
Nat Aust BankNABPBMCPS III17/12/20203.25%3.86%-0.14%98.305.61%
Nat Aust BankNABPCCapital Note III23/03/20203.50%3.78%0.18%99.615.53%
Nat Aust BankNABPDCapital Note Basel III7/07/20224.95%4.19%0.00%103.965.94%
NufarmNFNGStep UpPerpetual3.90%5.02%-0.06%86.007.01%
PaperlinxPXUPAPerp'l Pref30/06/2052N/A8.80%0.00%12.5010.79%
Ramsay Health CareRHCPAPerp'l PrefPerpetual4.85%4.30%-0.29%107.756.29%
Suncorp-MetwaySBKHBIncome SecPerpetual0.75%2.25%0.03%73.514.00%
SuncorpSUNPCMCPS III17/12/20174.65%2.90%-0.24%102.584.65%
SuncorpSUNPEMCPS III17/06/20203.40%3.71%-0.21%99.505.46%
Seven Network TELYS 4SVWPAPerp'l Pref2/12/20544.75%8.28%0.12%70.4510.27%
WestpacWBCPCMCPS III31/03/20183.25%2.18%0.01%101.824.17%
WestpacWBCPDMCPS III8/03/20193.20%3.46%0.09%100.085.21%
WestpacWBCPEMCPS III23/09/20223.05%4.10%0.03%95.305.85%
WestpacWBCPFCapital Note III22/03/20214.00%4.01%-0.02%100.505.76%
WestpacWBCPGCapital Note Basel III20/12/20214.90%3.99%-0.03%104.505.74%
** YTM for floating rate securities is an estimate using current interest rates. This will vary if rates change.
Source: Evans & Partners. Dealing Contact Michael Saba +61 3 9631 9813