ASX Listed Hybrid Securities 28 Sep – 2 Oct 2015

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The major hybrid news is Origin Energy has confirmed its intention to redeem or repurchase the company’s notes (ASX code:  ORGHA) as part of a raft of measures aimed at strengthening its balance sheet. The notes have a first call date in December 2016 and in Origin’s presentations to investors the company stated the notes would be “refinanced out of existing debt facilities”. Click here for the main article.

There has been a lot of focus on the new Westpac hybrid (ASX Code: WBCPF). It was issued at a margin of 400bps over BBSW and has never traded above its face value price of $100. It closed last week at $97.80 after trading as low as $96.51 on its first day’s trading but has fared well relative to the rest of the market according to Evans and Partners. The scatter chart below shows how the trading margin compares to similar style issues with the NABPBs and ANZPDs both trade at a higher margin. If the WBCPF moved to a comparable margin over 5% this would be reflected in a price fall of $1.80. WBCPFs first dividend will be paid in December.  NABPB is also paid in December, whereas ANZPD next pays in Feb 2016.

10052015 Hybrid Weekly

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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%3.69%-0.11%99.605.85%
ANZ Banking GroupANZPCMCPS II28/09/20173.10%3.98%-0.08%98.936.22%
ANZ Banking GroupANZPDMCPS II1/09/20213.40%5.34%0.19%91.507.58%
ANZ Banking GroupANZPECapital Note24/03/20223.25%5.18%0.17%90.507.42%
Bendigo BankBENHBPerpetual21/10/20541.00%2.64%-0.01%74.004.80%
Bendigo BankBENPDMCPS II13/12/20175.00%4.68%0.27%102.866.92%
Bendigo BankBENPEMCPS II30/11/20203.20%5.32%0.05%93.007.56%
Bendigo BankBENPFMCPSII15/06/20214.00%5.28%0.45%96.107.52%
Bank Of QueenslandBOQPDMCPS II16/04/20185.10%4.25%0.59%101.766.49%
CBA PERLS 3PCAPAStep Up6/04/20161.05%3.49%-0.23%197.555.65%
CBA PERLS 6CBAPCMCPS II15/12/20183.80%3.89%0.17%100.056.05%
CBA PERLS 7CBAPDMCPS II15/12/20222.80%5.26%0.27%86.887.42%
ChallengerCGFPACapital Note25/05/20203.40%5.11%-0.01%94.007.27%
EldersELDPAPerp'l Pref30/06/2051N/A0.00%0.00%75.520.00%
IAGIAGPCMCPS II1/05/20174.00%4.25%0.06%102.316.49%
IAG RESIANGReset pref16/12/20194.00%4.53%0.20%99.996.69%
Macquarie BankMBLHBIncome SecPerpetual1.70%3.77%-0.01%71.105.93%
MacquarieMBLPACapital Note24/03/20203.30%5.04%0.24%92.207.28%
MacquarieMQGPACapital Note19/06/20184.00%4.64%0.36%99.616.88%
Multiplex SITESMXUPAPerp'l PrefPerpetual3.90%6.16%0.34%75.608.32%
Nat Aust BankNABHAIncome SecPerpetual1.25%3.48%0.09%68.305.64%
Nat Aust BankNABPAMCPS II20/03/20193.20%4.62%-0.10%95.866.78%
Nat Aust BankNABPBMCPS II17/12/20203.25%4.95%0.13%93.007.11%
NufarmNFNGStep UpPerpetual3.90%5.61%0.08%80.517.85%
PaperlinxPXUPAPerp'l Pref30/06/2052N/A8.80%0.00%13.0011.04%
Ramsay Health CareRHCPAPerp'l PrefPerpetual4.85%4.78%-0.06%100.607.02%
Suncorp-MetwaySBKHBIncome SecPerpetual0.75%2.13%0.01%76.504.29%
SuncorpSUNPCMCPS II17/12/20174.65%3.88%-0.28%101.906.04%
SuncorpSUNPEMCPS II17/06/20203.40%4.67%-0.21%95.256.83%
Seven Network TELYS 4SVWPAPerp'l Pref2/12/20544.75%9.24%0.24%65.8011.48%
WestpacWBCPCMCPS II31/03/20183.25%4.23%-0.05%97.856.47%
WestpacWBCPDMCPS II8/03/20193.20%4.59%-0.15%96.206.75%
WestpacWBCPEMCPS II23/09/20223.05%4.94%0.09%90.007.10%
WestpacWCTPAStep Up30/06/20161.00%2.98%-0.63%98.605.14%

** 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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