14 Mar – 18 Mar 2016

Share

[private role=’subscriber’]

Deferred trading in CBA PERLS VIII (CBAPE) begins next week. Readers will recall the margin above BBSW was set at 520bps and the first call date is 15 October 2021. For readers who wish to know how this compare, below is a diagram of some other major bank securities in this space.

majorbanks-18mar

Hybrids outside of the major banks: BENPE and SUNPC are worth looking at but for two very different and opposing reasons.

hybrids-financials-18mar

ASX-listed floating rate hybrid margins were again quite stable and by the end of the week the median trading margin at the end of the week was 4.83%, down from the previous week’s 4.98% but mostly due to the fall in WCTPA trading margin (see previous week’s commentary).

[/private]

[private role=’subscriber’]

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%3.04%0.02%100.065.37%
ANZ Banking GroupANZPCMCPS II28/09/20173.10%3.48%-0.37%99.705.92%
ANZ Banking GroupANZPDMCPS II1/09/20213.40%5.43%-0.03%91.407.87%
ANZ Banking GroupANZPECapital Note24/03/20223.25%5.75%0.19%88.218.19%
ANZ Banking GroupANZPFCapital Note24/03/20233.60%5.87%0.17%88.058.31%
Bendigo BankBENHBPerpetual21/10/20541.00%2.96%-0.03%0.005.29%
Bendigo BankBENPDMCPS II13/12/20175.00%4.72%0.10%102.357.16%
Bendigo BankBENPEMCPS II30/11/20203.20%6.22%0.04%90.208.66%
Bendigo BankBENPFMCPSII15/06/20214.00%6.18%0.00%92.608.62%
Bank Of QueenslandBOQPDMCPS II15/04/20185.10%5.04%0.06%103.307.48%
CBA PERLS 6CBAPCMCPS II15/12/20183.80%4.48%0.14%98.356.81%
CBA PERLS 7CBAPDMCPS II15/12/20222.80%5.58%0.05%85.707.91%
ChallengerCGFPACapital Note25/05/20203.40%6.53%0.19%89.508.86%
IAGIAGPCMCPS II1/05/20174.00%4.36%0.10%102.006.80%
IAG RESIANGReset pref16/12/20194.00%4.53%0.09%98.306.86%
Macquarie BankMBLHBIncome SecPerpetual1.70%4.33%0.00%65.506.66%
MacquarieMBLPACapital Note24/03/20213.30%5.69%-0.05%90.208.13%
MacquarieMQGPACapital Note7/06/20194.00%4.60%-0.09%99.707.04%
Multiplex SITESMXUPAPerp'l PrefPerpetual3.90%6.75%-0.09%71.549.08%
Nat Aust BankNABHAIncome SecPerpetual1.25%3.77%0.00%64.156.10%
Nat Aust BankNABPAMCPS II20/03/20193.20%4.72%0.10%95.857.05%
Nat Aust BankNABPBMCPS II17/12/20203.25%5.39%0.11%91.607.72%
Nat Aust BankNABPCCapital Note23/03/20203.50%5.10%-0.20%94.397.43%
NufarmNFNGStep UpPerpetual3.90%5.67%0.06%82.308.11%
PaperlinxPXUPAPerp'l Pref30/06/2052N/A8.80%0.00%10.0011.24%
Ramsay Health CareRHCPAPerp'l PrefPerpetual4.85%4.77%-0.05%104.007.21%
Suncorp-MetwaySBKHBIncome SecPerpetual0.75%2.17%-0.02%0.004.50%
SuncorpSUNPCMCPS II17/12/20174.65%3.68%-0.30%101.606.01%
SuncorpSUNPEMCPS II17/06/20203.40%4.83%-0.32%94.807.16%
Seven Network TELYS 4SVWPAPerp'l Pref2/12/20544.75%10.11%-0.01%60.5012.55%
WestpacWBCPCMCPS II31/03/20183.25%3.96%0.18%101.306.40%
WestpacWBCPDMCPS II8/03/20193.20%4.52%0.23%96.606.85%
WestpacWBCPEMCPS II22/09/20223.05%5.38%0.20%88.137.71%
WestpacWBCPFCapital Note22/03/20214.00%5.07%-0.10%95.507.40%
WestpacWCTPAStep Up30/06/20161.00%1.85%-1.53%99.604.18%

** 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]