APRA’s recently announced rules on the risk weightings for the big four banks and Macquarie have triggered Westpac’s issue of a new hybrid which will go towards increasing the banks tier 1 capital. The new hybrid (ASX code: WBCPF), will be issued at a margin to BBSW of between 400bps and 420bp, set in a book build process. The obvious question is, “what margin is enough?” Below is a rather...