04 Apr – 08 Apr 2016

Share

[private role=’subscriber’]

ASX-listed floating rate hybrid margins were again remarkably stable in this last week and at the end of this latest week, the median trading margin was 4.79%, down just 1 basis point from the previous week’s 4.80%. Bank of Queensland’s CPS (ASX code BOQPDs, see below) was out of favour this week and it was joined by Bendigo and Adelaide Bank’s CPS (ASX code BENPD). To prove it was not personal, investors bid up Bendigo’s CPS II (ASX code BENPE) and CPS III hybrids (ASX code BENPF) which saw trading margins fall modestly.

ASX listed hybrids chart 1 160411

An interesting chart below from Evans & Partners of ASX-listed hybrids shows three distinct groups of hybrids based on first-call dates. The charts illustrates how the trading margins of shorter-dated (green line) hybrids have dropped first, then the hybrids with call dates in 2020 and 2021 (red line) dropped and now they think the hybrids with call dates further out may have started.

hybrid-maturity-yieldreport
[/private]

[private role=’subscriber’]

ASX-LISTED HYBRIDS

COMPANYCODEHYBRID
TYPE
MATURITY
OR STEP-UP
DATE
MARGIN
INC FRANK
TRADING
MARGIN
∆ WEEKWEEK
CLOSE
YTM
Est**
AMP Capital NotesAMPPABasel III22/12/20215.10%4.50%-0.26%103.157.04%
ANZ Banking GroupANZPAMCPS II16/12/20163.10%2.93%0.29%100.424.92%
ANZ Banking GroupANZPCMCPS III28/09/20173.10%3.34%-0.07%100.205.85%
ANZ Banking GroupANZPDMCPS III1/09/20213.40%5.07%-0.27%93.257.78%
ANZ Banking GroupANZPECapital Note24/03/20223.25%5.28%-0.53%90.628.25%
ANZ Banking GroupANZPFCapital Note24/03/20233.60%5.50%-0.19%90.208.13%
Bendigo BankBENHBPerpetual21/10/20541.00%2.94%-0.02%68.955.24%
Bendigo BankBENPDMCPS III13/12/20175.00%4.58%0.42%102.976.60%
Bendigo BankBENPEMCPS III30/11/20203.20%6.24%0.00%90.508.68%
Bendigo BankBENPFMCPS III15/06/20214.00%6.15%-0.34%93.108.93%
Bank Of QueenslandBOQPDMCPS III16/04/20185.10%4.31%0.25%101.316.50%
CBA PERLS 6CBAPCMCPS III15/12/20183.80%4.03%-0.16%99.806.46%
CBA PERLS 7CBAPDMCPS III15/12/20222.80%5.31%-0.20%87.307.79%
CBA PERLS 8CBAPEMCPS IIII15/10/20215.20%4.78%-0.37%102.007.44%
ChallengerCGFPACapital Note25/05/20203.40%5.99%-0.25%91.658.52%
IAGIAGPCMCPS III1/05/20174.00%3.99%-0.27%102.756.70%
IAG RESIANGReset pref16/12/20194.00%4.69%0.02%98.156.95%
Macquarie BankMBLHBIncome SecPerpetual1.70%4.30%-0.03%64.506.60%
Macquarie BankMBLPACapital Note III24/03/20203.30%5.73%-0.17%90.428.34%
Macquarie GroupMQGPACapital Note III19/06/20184.00%4.86%0.17%99.357.13%
Macquarie GroupMQGPBCapital Note III17/03/20215.15%5.81%-0.09%97.358.34%
Multiplex SITESMXUPAPerp'l PrefPerpetual3.90%6.70%-0.14%71.809.12%
Nat Aust BankNABHAIncome SecPerpetual1.25%3.73%-0.04%64.256.05%
Nat Aust BankNABPAMCPS III20/03/20193.20%4.72%-0.11%96.207.11%
Nat Aust BankNABPBMCPS III17/12/20203.25%4.99%-0.09%93.457.36%
Nat Aust BankNABPCCapital Note III23/03/20203.50%4.94%-0.05%95.307.27%
NufarmNFNGStep UpPerpetual3.90%5.48%-0.11%81.008.03%
PaperlinxPXUPAPerp'l Pref30/06/2052N/A8.80%0.00%10.1111.24%
Ramsay Health CareRHCPAPerp'l PrefPerpetual4.85%4.70%0.02%101.657.12%
Suncorp-MetwaySBKHBIncome SecPerpetual0.75%2.14%-0.06%75.234.48%
SuncorpSUNPCMCPS III17/12/20174.65%4.14%0.26%101.206.15%
SuncorpSUNPEMCPS III17/06/20203.40%4.85%0.08%95.107.05%
Seven Network TELYS 4SVWPAPerp'l Pref2/12/20544.75%10.54%0.03%58.5512.95%
WestpacWBCPCMCPS III31/03/20183.25%3.33%-0.52%99.946.28%
WestpacWBCPDMCPS III8/03/20193.20%4.58%0.11%96.796.76%
WestpacWBCPEMCPS III23/09/20223.05%5.12%-0.56%89.697.95%
WestpacWBCPFCapital Note III22/03/20214.00%4.79%-0.09%97.007.16%
WestpacWCTPAStep Up30/06/20161.00%1.77%-1.58%99.605.62%

** 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]