22 Feb – 26 Feb 2016

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CBA set the margin on its PERLS VIII issue at 5.20% – the low end of the indicated range – following strong investor support and despite the market commentary that the margin range (5.20% to 5.35%) was too low. The initial return to investors will be around 7.50% per annum. CBA PERLS III (ASX Code: PCAPA) will be redeemed in April if they are not rolled into PERLS VIII. Trading margins on comparable bank hybrids have fallen to finish the week at levels more in line with the latest CBA hybrid offering.

cba-new-issue-26feb

ASX-listed floating rate hybrid margins generally were quite stable and by the end of the week the median trading margin at the end of the week was 5.09%, the same as the previous week. There were some quite large movements but only from securities close to maturity such as ANZPA and PCAPA. As with the end of the previous week, trading margins are still at generally elevated levels.

weekly-change-trading-26feb
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ASX LISTED HYBRIDS

COMPANYCODEHYBRID
TYPE
MATURITY
OR STEP-UP
DATE
MARGIN
INC FRANK
TRADING
MARGIN
∆ WEEKWEEK
CLOSE
YTM
Est**
ANZ Banking GroupANZPAMCPS I16/12/20163.10%3.25%-0.76%99.65.53%
ANZ Banking GroupANZPCMCPS II28/09/20173.10%3.39%-0.63%99.55.78%
ANZ Banking GroupANZPDMCPS II1/09/20213.40%5.35%0.05%91.37.74%
ANZ Banking GroupANZPECapital Note24/03/20223.25%5.30%-0.10%92.5497.69%
ANZ Banking GroupANZPFCapital Note24/03/20233.60%5.61%0.08%91.88.00%
Bendigo BankBENHBPerpetual21/10/20541.00%2.94%-0.01%05.22%
Bendigo BankBENPDMCPS II13/12/20175.00%5.02%0.01%101.437.41%
Bendigo BankBENPEMCPS II30/11/20203.20%5.77%-0.06%91.38.16%
Bendigo BankBENPFMCPSII15/06/20214.00%5.70%-0.44%948.09%
Bank Of QueenslandBOQPDMCPS II15/04/20185.10%5.53%0.44%101.97.92%
CBA PERLS 3PCAPAStep Up6/04/20161.05%2.34%-1.00%200.054.62%
CBA PERLS 6CBAPCMCPS II15/12/20183.80%4.73%0.08%98.857.01%
CBA PERLS 7CBAPDMCPS II15/12/20222.80%5.45%0.25%87.157.73%
ChallengerCGFPACapital Note25/05/20203.40%6.16%0.04%90.258.44%
IAGIAGPCMCPS II1/05/20174.00%4.13%-0.02%101.856.52%
IAG RESIANGReset pref16/12/20194.00%4.64%-0.19%99.16.92%
Macquarie BankMBLHBIncome SecPerpetual1.70%4.23%-0.02%65.566.51%
MacquarieMBLPACapital Note24/03/20213.30%5.61%0.06%92.98.00%
MacquarieMQGPACapital Note7/06/20194.00%4.77%0.17%98.87.16%
Multiplex SITESMXUPAPerp'l PrefPerpetual3.90%6.59%-0.05%71.98.87%
Nat Aust BankNABHAIncome SecPerpetual1.25%3.70%0.08%645.98%
Nat Aust BankNABPAMCPS II20/03/20193.20%4.98%0.08%96.127.26%
Nat Aust BankNABPBMCPS II17/12/20203.25%5.17%-0.09%927.45%
Nat Aust BankNABPCCapital Note23/03/20203.50%5.37%0.04%94.5027.65%
NufarmNFNGStep UpPerpetual3.90%5.73%-0.06%818.12%
PaperlinxPXUPAPerp'l Pref30/06/2052N/A8.80%0.00%1111.19%
Ramsay Health CareRHCPAPerp'l PrefPerpetual4.85%4.89%-0.03%1027.28%
Suncorp-MetwaySBKHBIncome SecPerpetual0.75%2.16%-0.01%74.544.44%
SuncorpSUNPCMCPS II17/12/20174.65%4.43%-0.34%101.76.71%
SuncorpSUNPEMCPS II17/06/20203.40%5.35%0.04%947.63%
Seven Network TELYS 4SVWPAPerp'l Pref2/12/20544.75%10.17%-0.64%59.312.56%
WestpacWBCPCMCPS II31/03/20183.25%4.43%-0.20%1006.82%
WestpacWBCPDMCPS II8/03/20193.20%4.54%-0.27%96.186.82%
WestpacWBCPEMCPS II22/09/20223.05%5.51%0.11%88.47.79%
WestpacWBCPFCapital Note22/03/20214.00%5.29%0.08%95.757.57%
WestpacWCTPAStep Up30/06/20161.00%3.33%0.02%99.75.61%

** 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

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