CBA hybrid damages limited despite Austrac controversy

04 August 2017

CBA’s woes with Austrac over its failure to report over 50,000 suspicious transactions appears to have limited effect in the market for CBA’s ASX-listed hybrids. While trading margins on all CBA hybrids increased compared to a week ago, only CBA PERLS 6 (ASX code: CBAPC) margin increased by a larger-than-usual amount (+66bps) over the week. The PERLS 6 have just over 12 months to maturity and so changes in trading margins tend to be amplified.

However, as readers can see in the chart above, trading margins on CBA hybrids tend to be on the high side compared to their peers for any given maturity. Even so, there does not seem to be a large gap between CBA’s hybrids and those issued by ANZ, NAB and Westpac although the story has only just emerged and there may be more news to come.