08 Feb – 12 Feb 2016

Share

[private role=’subscriber’]

Readers can now see some of the more interesting movements in trading margins on a daily basis with YieldReport’s Daily Hybrid Update which you will find in the Exclusive Insights section

This week CBA announced its half-yearly result and in the accompanying press release indicated it was considering a new hybrid issue to replace its PERLS III issue. This will be big news if and when it eventuates. [SEE STORY]

Generally ASX-listed floating rate hybrid margins rose over the week and the average trading margin at the end of the week was 5.42%, up a substantial 61bps from the previous week’s 4.81%. The margin largest movements were from Suncorp’s CPS 3 (ASX code) SUNPE and Westpac’s Capital Notes 2 (ASX code WBCPE). The trading margins for SUNPE and WBCPE rose 116bps and 108 bps respectively.

At first glance, the increase on the WBCPE may suggest some imprudent selling but the chart below indicates a move back towards the field is a more-likely explanation.

major-hybrid-margin-12feb
The same should not be said for the SUNPEs and the chart below shows why:
ex-major-hybrid-margin-12feb
[/private]

[private role=’subscriber’]

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%3.68%0.54%100.385.96%
ANZ Banking GroupANZPCMCPS II28/09/20173.10%3.79%-0.15%98.716.19%
ANZ Banking GroupANZPDMCPS II1/09/20213.40%5.50%0.31%93.307.90%
ANZ Banking GroupANZPECapital Note24/03/20223.25%5.71%0.49%90.498.11%
ANZ Banking GroupANZPFCapital Note24/03/20233.60%5.72%0.61%91.008.12%
Bendigo BankBENHBPerpetual21/10/20541.00%2.77%-0.14%70.605.05%
Bendigo BankBENPDMCPS II13/12/20175.00%5.11%0.50%101.007.51%
Bendigo BankBENPEMCPS II30/11/20203.20%6.11%0.64%89.808.51%
Bendigo BankBENPFMCPSII15/06/20214.00%6.35%0.69%91.158.75%
Bank Of QueenslandBOQPDMCPS II15/04/20185.10%5.42%0.64%101.807.82%
CBA PERLS 3PCAPAStep Up6/04/20161.05%4.38%0.57%199.186.66%
CBA PERLS 6CBAPCMCPS II15/12/20183.80%4.77%0.76%98.507.05%
CBA PERLS 7CBAPDMCPS II15/12/20222.80%5.63%0.45%86.057.91%
ChallengerCGFPACapital Note25/05/20203.40%6.58%0.68%90.008.86%
IAGIAGPCMCPS II1/05/20174.00%4.22%0.28%101.506.62%
IAG RESIANGReset pref16/12/20194.00%4.98%0.24%97.757.26%
Macquarie BankMBLHBIncome SecPerpetual1.70%4.39%0.42%64.006.67%
MacquarieMBLPACapital Note24/03/20213.30%5.64%0.41%92.508.04%
MacquarieMQGPACapital Note7/06/20194.00%5.05%0.75%97.757.45%
Multiplex SITESMXUPAPerp'l PrefPerpetual3.90%6.97%0.39%68.909.25%
Nat Aust BankNABHAIncome SecPerpetual1.25%3.70%0.17%63.955.98%
Nat Aust BankNABPAMCPS II20/03/20193.20%5.71%0.80%93.927.99%
Nat Aust BankNABPBMCPS II17/12/20203.25%5.86%0.51%90.508.14%
Nat Aust BankNABPCCapital Note23/03/20203.50%5.65%0.31%93.307.93%
NufarmNFNGStep UpPerpetual3.90%5.93%0.28%79.008.33%
PaperlinxPXUPAPerp'l Pref30/06/2052N/A8.80%0.00%10.1011.20%
Ramsay Health CareRHCPAPerp'l PrefPerpetual4.85%4.91%0.09%101.557.31%
Suncorp-MetwaySBKHBIncome SecPerpetual0.75%1.99%-0.07%0.004.27%
SuncorpSUNPCMCPS II17/12/20174.65%4.40%0.27%101.506.68%
SuncorpSUNPEMCPS II17/06/20203.40%6.26%1.16%90.608.54%
Seven Network TELYS 4SVWPAPerp'l Pref2/12/20544.75%12.37%1.63%50.4914.77%
WestpacWBCPCMCPS II31/03/20183.25%4.89%0.64%98.877.29%
WestpacWBCPDMCPS II8/03/20193.20%5.42%1.08%94.957.70%
WestpacWBCPEMCPS II22/09/20223.05%5.44%0.50%88.507.72%
WestpacWBCPFCapital Note22/03/20214.00%5.40%0.59%95.017.68%
WestpacWCTPAStep Up30/06/20161.00%3.84%-0.31%99.316.12%

** 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

[/private]