16 May – 20 May 2016

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ASX-listed floating rate hybrid margins were generally higher and by the end of the week the median trading margin was at 4.57%, up from 4.42%, and back to the levels of two weeks ago.

Westpac will be redeeming its Westpac Trust Preferred Securities (ASX code: WCTPA) and effectively replacing them with the new Capital Notes 4 hybrids (ASX code: WBCPG) which will pay BBSW + (490-510) bps, inclusive of franking credits.  As the diagram below shows this margin is line with other hybrids. It may also explain why Insurance Australia’s CPSII (ASX code: IAGPC) margin moved up by 150bps over the week. Speculation is the IAGPC’s are being used to fund the latest hybrid offer.

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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%4.59%0.07%103.456.58%
ANZ Banking GroupANZPAMCPS II16/12/20163.10%2.78%0.20%101.054.77%
ANZ Banking GroupANZPCMCPS III28/09/20173.10%3.66%0.48%100.405.78%
ANZ Banking GroupANZPDMCPS III1/09/20213.40%4.77%0.03%95.206.89%
ANZ Banking GroupANZPECapital Note24/03/20223.25%4.99%0.29%92.607.11%
ANZ Banking GroupANZPFCapital Note24/03/20233.60%5.05%-0.10%93.157.17%
Bendigo BankBENHBPerpetual21/10/20541.00%2.86%0.02%68.954.85%
Bendigo BankBENPDMCPS III13/12/20175.00%4.11%0.91%104.356.23%
Bendigo BankBENPEMCPS III30/11/20203.20%5.18%-0.08%92.307.30%
Bendigo BankBENPFMCPS III15/06/20214.00%5.32%-0.18%97.117.44%
Bank Of QueenslandBOQPDMCPS III16/04/20185.10%4.22%0.15%102.206.34%
CBA PERLS 6CBAPCMCPS III15/12/20183.80%3.85%0.15%100.885.84%
CBA PERLS 7CBAPDMCPS III15/12/20222.80%4.90%0.05%89.906.89%
CBA PERLS 8CBAPEMCPS IIII15/10/20215.20%4.68%0.04%103.256.67%
ChallengerCGFPACapital Note25/05/20203.40%5.30%-0.12%93.357.29%
IAGIAGPCMCPS III1/05/20174.00%3.06%1.79%101.115.18%
IAG RESIANGReset pref16/12/20194.00%4.14%-0.15%100.606.13%
Macquarie BankMBLHBIncome SecPerpetual1.70%4.15%0.03%65.806.14%
Macquarie BankMBLPACapital Note III24/03/20203.30%4.93%0.11%94.207.05%
Macquarie GroupMQGPACapital Note III19/06/20184.00%4.41%0.05%101.306.53%
Macquarie GroupMQGPBCapital Note III17/03/20215.15%5.33%0.09%100.387.45%
Multiplex SITESMXUPAPerp'l PrefPerpetual3.90%6.58%0.04%73.008.57%
Nat Aust BankNABHAIncome SecPerpetual1.25%3.63%0.11%64.155.62%
Nat Aust BankNABPAMCPS III20/03/20193.20%4.57%0.82%97.306.56%
Nat Aust BankNABPBMCPS III17/12/20203.25%4.49%0.14%96.006.48%
Nat Aust BankNABPCCapital Note III23/03/20203.50%4.62%0.21%97.056.61%
NufarmNFNGStep UpPerpetual3.90%5.47%-0.06%81.507.59%
PaperlinxPXUPAPerp'l Pref30/06/2052N/A8.80%0.00%10.0310.92%
Ramsay Health CareRHCPAPerp'l PrefPerpetual4.85%4.59%-0.05%104.006.71%
Suncorp-MetwaySBKHBIncome SecPerpetual0.75%2.09%-0.03%75.124.08%
SuncorpSUNPCMCPS III17/12/20174.65%3.96%0.97%102.155.95%
SuncorpSUNPEMCPS III17/06/20203.40%4.36%-0.37%97.506.35%
Seven Network TELYS 4SVWPAPerp'l Pref2/12/20544.75%11.35%1.81%58.5513.47%
WestpacWBCPCMCPS III31/03/20183.25%3.34%0.89%100.525.46%
WestpacWBCPDMCPS III8/03/20193.20%4.42%0.46%97.906.41%
WestpacWBCPEMCPS III23/09/20223.05%4.92%0.12%91.316.91%
WestpacWBCPFCapital Note III22/03/20214.00%4.57%0.16%98.596.56%
WestpacWCTPAStep Up30/06/20161.00%1.10%3.13%100.083.09%

** 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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