09 Nov – 13 Nov 2015

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ASX-listed corporate bond yields generally reversed their recent weeks’ trend with yields rising. Average yields, as measured by the trading margins, rose from 2.58% to 2.79% across the ASX-listed floating rate notes and bonds in the YieldReport survey. This compares with the 2.62% trading margin at the end of October and the 2.86% at the end of September.

ASX–listed floating rate hybrid yields were similar and margins increased as they had in the previous week. The average ASX-listed floating rate hybrid margin at the end of the week was 4.49%, up from the end of October’s 4.31% and back to the level at the end of September when the average trading margin was 4.48%.Hybrids E&P chart

Last week YieldReport published a chart of the regional and non-bank hybrid issuers of AT1 (additional tier 1) capital. This week, it’s back to the major banks and assorted large financial institution issuers. The interesting part is in the “outliers”. In this case the outliers seem to be the new AMP hybrids which are yet to be issued and the two Bendigo and Adelaide Bank converting preference shares, BENPE and BENPD.

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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%3.61%-0.39%100.305.84%
ANZ Banking GroupANZPCMCPS II28/09/20173.10%4.03%0.38%99.506.37%
ANZ Banking GroupANZPDMCPS II1/09/20213.40%4.56%0.12%95.706.90%
ANZ Banking GroupANZPECapital Note24/03/20223.25%4.47%-0.07%94.596.81%
Bendigo BankBENHBPerpetual21/10/20541.00%3.14%0.13%68.265.37%
Bendigo BankBENPDMCPS II13/12/20175.00%4.39%0.04%104.196.73%
Bendigo BankBENPEMCPS II30/11/20203.20%4.89%0.39%95.507.23%
Bendigo BankBENPFMCPSII15/06/20214.00%4.80%0.14%99.007.14%
Bank Of QueenslandBOQPDMCPS II15/04/20185.10%4.13%0.28%102.706.47%
CBA PERLS 3PCAPAStep Up6/04/20161.05%3.39%-0.13%198.805.62%
CBA PERLS 6CBAPCMCPS II15/12/20183.80%4.07%0.19%100.206.30%
CBA PERLS 7CBAPDMCPS II15/12/20222.80%4.49%0.05%91.506.72%
ChallengerCGFPACapital Note25/05/20203.40%4.79%0.20%94.507.02%
IAGIAGPCMCPS II1/05/20174.00%3.40%0.22%100.995.74%
IAG RESIANGReset pref16/12/20194.00%4.65%0.30%100.306.88%
Macquarie BankMBLHBIncome SecPerpetual1.70%4.01%0.04%69.616.24%
MacquarieMBLPACapital Note24/03/20213.30%4.43%0.08%95.596.77%
MacquarieMQGPACapital Note7/06/20194.00%4.48%0.04%100.856.82%
Multiplex SITESMXUPAPerp'l PrefPerpetual3.90%6.17%0.14%76.568.40%
Nat Aust BankNABHAIncome SecPerpetual1.25%3.42%0.01%69.005.65%
Nat Aust BankNABPAMCPS II20/03/20193.20%4.28%0.10%97.546.51%
Nat Aust BankNABPBMCPS II17/12/20203.25%4.58%0.23%95.206.81%
NufarmNFNGStep UpPerpetual3.90%5.55%0.09%82.007.89%
PaperlinxPXUPAPerp'l Pref30/06/2052N/A8.80%0.00%12.0011.14%
Ramsay Health CareRHCPAPerp'l PrefPerpetual4.85%4.59%-0.01%103.706.93%
Suncorp-MetwaySBKHBIncome SecPerpetual0.75%2.10%-0.02%77.004.33%
SuncorpSUNPCMCPS II17/12/20174.65%3.86%0.25%102.606.09%
SuncorpSUNPEMCPS II17/06/20203.40%4.15%-0.13%97.906.38%
Seven Network TELYS 4SVWPAPerp'l Pref2/12/20544.75%8.77%0.31%66.0011.11%
WestpacWBCPCMCPS II31/03/20183.25%4.10%0.15%98.806.44%
WestpacWBCPDMCPS II8/03/20193.20%4.03%-0.19%98.506.26%
WestpacWBCPEMCPS II22/09/20223.05%4.65%0.13%92.166.88%
WestpacWCTPAStep Up30/06/20161.00%3.38%0.10%98.905.61%

** 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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