05 Oct – 09 Oct 2015

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Following on from last week’s comment on the announced redemption of Origin Energy notes in December 2016, Origin notes began trading after its trading halt and the almost instantly reversed most of the rise seen in the last few weeks. Click here for the main article.

The strength in equity markets rubbed off on listed hybrids with margins generally declining. The first chart shown below shows how margins have contracted for bank hybrids. Keep in mind margins were much lower only a few month ago and readers can see from a comparable chart in May how much margins have risen. Other types of hybrid capital are also at wide margins but some contraction would appear likely as banks’ margins tighten.

bankhybrids

12 May 2015
bank hybrid margin

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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%3.20%-0.49%100.305.38%
ANZ Banking GroupANZPCMCPS II28/09/20173.10%3.57%-0.41%99.805.83%
ANZ Banking GroupANZPDMCPS II1/09/20213.40%4.82%-0.52%93.997.08%
ANZ Banking GroupANZPECapital Note24/03/20223.25%4.98%-0.19%91.607.24%
Bendigo BankBENHBPerpetual21/10/20541.00%2.67%0.03%73.994.85%
Bendigo BankBENPDMCPS II13/12/20175.00%4.45%-0.23%103.516.71%
Bendigo BankBENPEMCPS II30/11/20203.20%4.83%-0.49%95.157.09%
Bendigo BankBENPFMCPSII15/06/20214.00%5.01%-0.27%97.507.27%
Bank Of QueenslandBOQPDMCPS II15/04/20185.10%3.92%-0.33%102.706.18%
CBA PERLS 3PCAPAStep Up6/04/20161.05%3.64%0.16%197.725.82%
CBA PERLS 6CBAPCMCPS II15/12/20183.80%4.04%0.15%99.806.22%
CBA PERLS 7CBAPDMCPS II15/12/20222.80%4.80%-0.46%89.406.98%
ChallengerCGFPACapital Note25/05/20203.40%5.11%0.01%94.167.29%
EldersELDPAPerp'l Pref30/06/2051N/A0.00%0.00%76.000.00%
IAGIAGPCMCPS II1/05/20174.00%4.06%-0.19%102.776.32%
IAG RESIANGReset pref16/12/20194.00%4.38%-0.15%100.706.56%
Macquarie BankMBLHBIncome SecPerpetual1.70%3.80%0.03%71.105.98%
MacquarieMBLPACapital Note24/03/20213.30%4.67%-0.37%94.006.93%
MacquarieMQGPACapital Note7/06/20194.00%4.48%-0.16%100.306.74%
Multiplex SITESMXUPAPerp'l PrefPerpetual3.90%6.03%-0.13%77.028.21%
Nat Aust BankNABHAIncome SecPerpetual1.25%3.42%-0.06%69.295.60%
Nat Aust BankNABPAMCPS II20/03/20193.20%4.70%0.08%95.806.88%
Nat Aust BankNABPBMCPS II17/12/20203.25%4.90%-0.05%93.407.08%
NufarmNFNGStep UpPerpetual3.90%5.57%-0.04%81.207.83%
PaperlinxPXUPAPerp'l Pref30/06/2052N/A8.80%0.00%13.0511.06%
Ramsay Health CareRHCPAPerp'l PrefPerpetual4.85%4.76%-0.02%101.057.02%
Suncorp-MetwaySBKHBIncome SecPerpetual0.75%2.12%-0.01%77.004.30%
SuncorpSUNPCMCPS II17/12/20174.65%4.17%0.28%101.506.35%
SuncorpSUNPEMCPS II17/06/20203.40%4.77%0.10%95.056.95%
Seven Network TELYS 4SVWPAPerp'l Pref2/12/20544.75%9.05%-0.19%67.2011.31%
WestpacWBCPCMCPS II31/03/20183.25%3.63%-0.60%99.355.89%
WestpacWBCPDMCPS II8/03/20193.20%4.34%-0.25%97.106.52%
WestpacWBCPEMCPS II22/09/20223.05%4.88%-0.06%90.507.06%
WestpacWCTPAStep Up30/06/20161.00%3.50%0.52%98.405.68%

** 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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