16 Nov – 20 Nov 2015

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There are a couple of new hybrid issues about to drop. Macquarie will issue a new March 2021 (first call date) hybrid at an indicated margin of 515bps to 535bps over the 90 day bank bill rate. The first quarter return will therefore be around 7.40% to 7.60% including a franking component based on a 40% franking rate. The new hybrids will replace the December 2015 Preferred Member Interests that are due to mature in December 2015.

ANZ is also expected to issue tier 2 hybrids in the form of floating rate subordinated notes worth A$600 million, due in 2026 and with Basel III compliant clauses.

ASX-listed bond margins continued their recent weeks’ trend with margins rising. Trading margins, rose from 2.79% to 2.92% 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 margins moved in the same direction and the average hybrid margin at the end of the week was 4.57%, up from 4.49%. This average trading margin is above the end of October’s 4.31% and back above the level at the end of September when the average trading margin was 4.48%.

Click here for the YieldReport INSIGHT on what may be an opportune time for hybrid investors to look at certain bank hybrids.

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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%3.43%-0.18%100.605.68%
ANZ Banking GroupANZPCMCPS II28/09/20173.10%4.26%0.23%99.256.62%
ANZ Banking GroupANZPDMCPS II1/09/20213.40%4.78%0.22%94.847.14%
ANZ Banking GroupANZPECapital Note24/03/20223.25%4.83%0.36%93.007.19%
Bendigo BankBENHBPerpetual21/10/20541.00%3.14%0.00%68.265.39%
Bendigo BankBENPDMCPS II13/12/20175.00%4.35%-0.04%104.406.71%
Bendigo BankBENPEMCPS II30/11/20203.20%4.86%-0.03%93.007.22%
Bendigo BankBENPFMCPSII15/06/20214.00%4.83%0.03%99.007.19%
Bank Of QueenslandBOQPDMCPS II15/04/20185.10%4.28%0.15%102.506.64%
CBA PERLS 3PCAPAStep Up6/04/20161.05%2.88%-0.51%199.385.13%
CBA PERLS 6CBAPCMCPS II15/12/20183.80%4.28%0.21%99.756.53%
CBA PERLS 7CBAPDMCPS II15/12/20222.80%4.77%0.28%90.207.02%
ChallengerCGFPACapital Note25/05/20203.40%5.04%0.25%93.707.29%
IAGIAGPCMCPS II1/05/20174.00%3.99%0.59%100.306.35%
IAG RESIANGReset pref16/12/20194.00%4.17%-0.48%100.506.42%
Macquarie BankMBLHBIncome SecPerpetual1.70%3.93%-0.08%70.466.18%
MacquarieMBLPACapital Note24/03/20213.30%4.78%0.35%94.207.14%
MacquarieMQGPACapital Note7/06/20194.00%4.64%0.16%100.507.00%
Multiplex SITESMXUPAPerp'l PrefPerpetual3.90%6.35%0.18%75.208.60%
Nat Aust BankNABHAIncome SecPerpetual1.25%3.45%0.03%68.705.70%
Nat Aust BankNABPAMCPS II20/03/20193.20%4.55%0.27%96.896.80%
Nat Aust BankNABPBMCPS II17/12/20203.25%4.76%0.17%94.627.01%
NufarmNFNGStep UpPerpetual3.90%5.74%0.19%80.348.10%
PaperlinxPXUPAPerp'l Pref30/06/2052N/A8.80%0.00%11.7711.16%
Ramsay Health CareRHCPAPerp'l PrefPerpetual4.85%4.60%0.01%103.706.96%
Suncorp-MetwaySBKHBIncome SecPerpetual0.75%2.10%0.00%0.004.35%
SuncorpSUNPCMCPS II17/12/20174.65%3.92%0.06%102.606.17%
SuncorpSUNPEMCPS II17/06/20203.40%4.37%0.22%97.206.62%
Seven Network TELYS 4SVWPAPerp'l Pref2/12/20544.75%9.02%0.25%64.7011.38%
WestpacWBCPCMCPS II31/03/20183.25%4.33%0.24%98.426.69%
WestpacWBCPDMCPS II8/03/20193.20%4.42%0.39%97.506.67%
WestpacWBCPEMCPS II22/09/20223.05%4.60%-0.05%92.556.85%
WestpacWCTPAStep Up30/06/20161.00%2.71%-0.68%99.404.96%

** 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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