04 Jul – 08 Jul 2016

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The median trading margin for hybrids fell this week, finishing at 4.41% and down 17bps from the previous reading of 4.58%. While movements in most trading margins over the week were quite mild, two stand out; that of Insurance Australia CPS 2 (ASX code: IAGPC) and Westpac Capital notes 2 (ASX code: WBCPE).

In Westpac‘s case, the rise is understandable as the trading margin is still at the lower band of the comparable securities. It is a little less clear in IAG’s case because the IAGPC have less than 12 months to the call (and likely maturity) date.

In other news NAB’s latest hybrid offering (ASX code: NABPD) got off to a solid start and finished its first day of trading at just a little over par. Elders is said to have repurchased just over 70% of its Elders Notes (ASX code: ELDPA). The buy back will conclude on 15 July as per the announcement in mid-June.

hybrids-8jul

ASX-LISTED HYBRIDS

COMPANYCODEHYBRID
TYPE
MATURITY
OR STEP-UP
DATE
MARGIN
INC FRANK
TRADING
MARGIN
∆ WEEKWEEK
CLOSE
YTM
Est**
AMP Capital NotesAMPPABasel III22-Dec-215.10%4.35%-0.01%103.706.32%
ANZ Banking GroupANZPAMCPS II16-Dec-163.10%2.77%0.75%100.414.74%
ANZ Banking GroupANZPCMCPS III28-Sep-173.10%2.68%-0.45%102.254.79%
ANZ Banking GroupANZPDMCPS III1-Sep-213.40%4.70%-0.24%96.306.81%
ANZ Banking GroupANZPECapital Note24-Mar-223.25%4.99%-0.06%93.407.10%
ANZ Banking GroupANZPFCapital Note24-Mar-233.60%5.05%-0.37%93.957.16%
Bendigo BankBENHBPerpetual21-Oct-541.00%3.08%-0.03%65.005.05%
Bendigo BankBENPDMCPS III13-Dec-175.00%3.47%-0.39%102.505.58%
Bendigo BankBENPEMCPS III30-Nov-203.20%4.99%0.07%93.857.10%
Bendigo BankBENPFMCPS III15-Jun-214.00%5.07%-0.08%95.957.18%
Bank Of QueenslandBOQPDMCPS III16-Apr-185.10%4.15%-0.15%103.186.26%
CBA PERLS 6CBAPCMCPS III15-Dec-183.80%3.50%-0.04%101.005.47%
CBA PERLS 7CBAPDMCPS III15-Dec-222.80%4.94%0.01%89.256.91%
CBA PERLS 8CBAPEMCPS IIII15-Oct-215.20%4.61%0.03%103.006.58%
ChallengerCGFPACapital Note25-May-203.40%4.76%0.01%96.006.73%
IAGIAGPCMCPS III1-May-174.00%2.43%-0.69%102.304.54%
IAG RESIANGReset pref16-Dec-194.00%4.03%-0.04%100.256.00%
Macquarie BankMBLHBIncome SecPerpetual1.70%4.10%-0.02%64.356.07%
Macquarie BankMBLPACapital Note III24-Mar-203.30%4.68%-0.10%96.006.79%
Macquarie GroupMQGPACapital Note III19-Jun-184.00%3.72%0.03%100.935.83%
Macquarie GroupMQGPBCapital Note III17-Mar-215.15%5.19%-0.16%101.997.30%
Multiplex SITESMXUPAPerp'l PrefPerpetual3.90%6.41%-0.01%71.208.38%
Nat Aust BankNABHAIncome SecPerpetual1.25%3.36%-0.11%65.955.33%
Nat Aust BankNABPAMCPS III20-Mar-193.20%3.99%-0.10%98.255.96%
Nat Aust BankNABPBMCPS III17-Dec-203.25%4.79%-0.16%94.406.76%
Nat Aust BankNABPCCapital Note III23-Mar-203.50%4.39%-0.38%97.276.36%
NufarmNFNGStep UpPerpetual3.90%5.30%0.00%83.407.41%
PaperlinxPXUPAPerp'l Pref30-Jun-52N/A8.80%0.00%9.1110.91%
Ramsay Health CareRHCPAPerp'l PrefPerpetual4.85%4.77%-0.08%102.506.88%
Suncorp-MetwaySBKHBIncome SecPerpetual0.75%1.92%-0.02%76.803.89%
SuncorpSUNPCMCPS III17-Dec-174.65%3.53%-0.20%101.885.50%
SuncorpSUNPEMCPS III17-Jun-203.40%4.91%0.22%95.106.88%
Seven Network TELYS 4SVWPAPerp'l Pref2-Dec-544.75%11.80%-0.19%56.6113.91%
WestpacWBCPCMCPS III31-Mar-183.25%3.25%-0.03%101.405.36%
WestpacWBCPDMCPS III8-Mar-193.20%4.17%0.04%98.006.14%
WestpacWBCPEMCPS III23-Sep-223.05%4.41%-0.59%93.256.38%
WestpacWBCPFCapital Note III22-Mar-214.00%4.43%0.03%98.506.40%
** 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