01 Aug – 05 Aug 2016

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Trading margins for hybrids changed very little this week, although the numbers may be a little skewed by the inclusion in the calculations of Westpac and NAB’s latest issues (ASX codes: NABPF, WBCPG). The median trading margin for hybrids rose 1 basis point to 4.15% as the trading margin of Challenger Capital Notes (+46bps) was offset by a plunge in Seven Network TELYS (ASX code: SVWPA, -208bps ) after the announcement of an on-market buy-back.

YieldReport’s kiss of death for Bendigo Bank CPS 2 (ASX code: BENPE) only lasted a week and the margin on fell back by 42bps. Other securities to have large margin movements were Bendigo Bank CPS (ASX code: BENPD) and ANZ CPS 2 (ASX code: ANZPA), which Morgans is recommending. Both ANZPA and BENPD have maturity dates which are not far away and readers have been reminded regularly of the link between maturity dates and yield swings.

hybrid-5aug

ASX-LISTED HYBRIDS

COMPANYCODEHYBRID
TYPE
MATURITY
OR STEP-UP
DATE
MARGIN
INC FRANK
TRADING
MARGIN
∆ WEEKWEEK
CLOSE
YTM
Est**
AMP Capital NotesAMPPACapital Note Basel322-Dec-215.10%4.28%0.02%104.506.07%
ANZ Banking GroupANZPAMCPS Basel216-Dec-163.10%1.15%-0.44%101.302.94%
ANZ Banking GroupANZPCMCPS Basel328-Sep-173.10%2.29%-0.38%102.954.26%
ANZ Banking GroupANZPDMCPS Basel31-Sep-213.40%4.38%0.01%98.046.35%
ANZ Banking GroupANZPECapital Note Basel324-Mar-223.25%4.39%-0.39%96.506.36%
ANZ Banking GroupANZPFCapital Note Basel324-Mar-233.60%4.38%-0.34%97.796.35%
Bendigo BankBENHBPerpetual21-Oct-541.00%2.95%0.00%67.004.74%
Bendigo BankBENPDMCPS Basel313-Dec-175.00%3.38%0.20%103.025.35%
Bendigo BankBENPEMCPS Basel330-Nov-203.20%4.72%-0.42%95.256.69%
Bendigo BankBENPFMCPS Basel315-Jun-214.00%4.49%-0.23%98.756.46%
Bank Of QueenslandBOQPDMCPS Basel316-Apr-185.10%3.59%-0.10%104.515.56%
CBA PERLS 6CBAPCMCPS Basel315-Dec-183.80%3.52%-0.12%101.345.31%
CBA PERLS 7CBAPDMCPS Basel315-Dec-222.80%4.81%-0.15%90.296.60%
CBA PERLS 8CBAPEMCPS Basel315-Oct-215.20%4.25%-0.14%105.056.04%
ChallengerCGFPACapital Note25-May-203.40%4.58%0.46%97.026.37%
Insurance Aust.IAGPCMCPS Basel31-May-174.00%1.82%-0.27%103.053.79%
Insurance Aust. (NZ) RESIANGReset Preference16-Dec-194.00%3.69%-0.31%101.705.48%
Macquarie BankMBLHBIncome SecuritesPerpetual1.70%4.06%-0.01%65.125.85%
Macquarie BankMBLPACapital Note Basel324-Mar-203.30%4.15%-0.12%98.496.12%
Macquarie GroupMQGPACapital Note Basel319-Jun-184.00%3.70%-0.17%101.395.67%
Macquarie GroupMQGPBCapital Note Basel317-Mar-215.15%4.78%-0.11%104.406.75%
Multiplex SITESMXUPAPerp'l PreferencePerpetual3.90%6.26%-0.08%73.008.05%
Nat Aust BankNABHAIncome SecuritiesPerpetual1.25%3.47%0.00%64.195.26%
Nat Aust BankNABPAMCPS Basel320-Mar-193.20%3.68%-0.42%99.405.47%
Nat Aust BankNABPBMCPS Basel317-Dec-203.25%4.15%-0.17%97.205.94%
Nat Aust BankNABPCCapital Note Basel323-Mar-203.50%3.98%-0.16%99.005.77%
Nat Aust BankNABPDCapital Note Basel37-Jul-204.95%4.74%-0.11%102.526.53%
NufarmNFNGStep UpPerpetual3.90%5.10%0.09%86.007.07%
PaperlinxPXUPAPerp'l Preference30-Jun-52N/A8.80%0.00%9.0010.77%
Ramsay Health CareRHCPAPerp'l PreferencePerpetual4.85%4.73%0.01%103.606.70%
Suncorp-MetwaySBKHBIncome SecurityPerpetual0.75%2.07%0.00%74.763.86%
SuncorpSUNPCMCPS Basel317-Dec-174.65%3.10%-0.15%102.844.89%
SuncorpSUNPEMCPS Basel317-Jun-203.40%4.29%0.08%97.606.08%
Seven Network TELYS 4SVWPAPerp'l Preference2-Dec-544.75%8.60%-2.08%72.2210.57%
WestpacWBCPCMCPS Basel331-Mar-183.25%2.83%-0.19%102.404.80%
WestpacWBCPDMCPS Basel38-Mar-193.20%3.63%0.06%99.705.42%
WestpacWBCPEMCPS Basel323-Sep-223.05%4.47%-0.23%93.396.26%
WestpacWBCPFCapital Note Basel322-Mar-214.00%4.11%-0.03%100.205.90%
WestpacWBCPGCapital Note Basel320-Dec-214.90%4.40%-0.14%102.906.19%
** 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