11 Jul – 15 Jul 2016

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The median trading margin for hybrids fell this week to 4.38% this week, down just 3bps from the previous week’s close. However, this small change in the median value cloaks the pervasive fall across the sector. Upon closer inspection, the margins of several securities such as ANZ CPS 2 (ASX code: ANZPA), WBC CPS (ASX code: WBCPC) and Macquarie Bank Notes (ASX code: MBLPA) each fell in excess of 50bps. These movements are leading to some in the stock-broking community to reassess their views of particular securities or indeed, the sector as a whole.

hybrid-15jul hybrids-15jul

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%4.21%-0.14%104.496.17%
ANZ Banking GroupANZPAMCPS II16-Dec-163.10%2.15%-0.62%100.754.11%
ANZ Banking GroupANZPCMCPS III28-Sep-173.10%3.27%0.59%101.705.37%
ANZ Banking GroupANZPDMCPS III1-Sep-213.40%4.69%-0.01%96.466.79%
ANZ Banking GroupANZPECapital Note24-Mar-223.25%4.82%-0.18%94.326.92%
ANZ Banking GroupANZPFCapital Note24-Mar-233.60%4.88%-0.17%94.956.98%
Bendigo BankBENHBPerpetual21-Oct-541.00%3.05%-0.04%66.015.01%
Bendigo BankBENPDMCPS III13-Dec-175.00%3.22%-0.25%102.955.32%
Bendigo BankBENPEMCPS III30-Nov-203.20%4.54%-0.45%95.606.64%
Bendigo BankBENPFMCPS III15-Jun-214.00%4.62%-0.45%97.906.72%
Bank Of QueenslandBOQPDMCPS III16-Apr-185.10%3.87%-0.27%103.755.97%
CBA PERLS 6CBAPCMCPS III15-Dec-183.80%3.21%-0.29%101.775.17%
CBA PERLS 7CBAPDMCPS III15-Dec-222.80%4.79%-0.14%90.076.75%
CBA PERLS 8CBAPEMCPS IIII15-Oct-215.20%4.42%-0.19%103.956.38%
ChallengerCGFPACapital Note25-May-203.40%4.80%0.04%95.986.76%
IAGIAGPCMCPS III1-May-174.00%2.67%0.24%102.204.77%
IAG RESIANGReset pref16-Dec-194.00%4.03%0.00%100.355.99%
Macquarie BankMBLHBIncome SecPerpetual1.70%4.14%0.04%64.476.10%
Macquarie BankMBLPACapital Note III24-Mar-203.30%4.01%-0.67%98.756.11%
Macquarie GroupMQGPACapital Note III19-Jun-184.00%3.78%0.05%100.905.88%
Macquarie GroupMQGPBCapital Note III17-Mar-215.15%4.76%-0.44%104.156.86%
Multiplex SITESMXUPAPerp'l PrefPerpetual3.90%6.44%0.03%71.358.40%
Nat Aust BankNABHAIncome SecPerpetual1.25%3.50%0.14%64.945.46%
Nat Aust BankNABPAMCPS III20-Mar-193.20%4.10%0.11%98.106.06%
Nat Aust BankNABPBMCPS III17-Dec-203.25%4.51%-0.28%95.556.47%
Nat Aust BankNABPCCapital Note III23-Mar-203.50%4.49%0.11%97.056.45%
NufarmNFNGStep UpPerpetual3.90%5.32%0.02%83.507.42%
PaperlinxPXUPAPerp'l Pref30-Jun-52N/A8.80%0.00%9.1110.90%
Ramsay Health CareRHCPAPerp'l PrefPerpetual4.85%4.78%0.01%102.506.88%
Suncorp-MetwaySBKHBIncome SecPerpetual0.75%2.12%0.20%74.104.08%
SuncorpSUNPCMCPS III17-Dec-174.65%3.16%-0.38%102.505.12%
SuncorpSUNPEMCPS III17-Jun-203.40%4.67%-0.23%96.006.63%
Seven Network TELYS 4SVWPAPerp'l Pref2-Dec-544.75%11.30%-0.50%59.0013.40%
WestpacWBCPCMCPS III31-Mar-183.25%2.67%-0.58%102.444.77%
WestpacWBCPDMCPS III8-Mar-193.20%3.91%-0.26%98.755.87%
WestpacWBCPEMCPS III23-Sep-223.05%4.63%0.22%92.306.59%
WestpacWBCPFCapital Note III22-Mar-214.00%4.38%-0.05%98.806.34%
** 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