Westpac CPS to be resold

19 February 2018

 

An analysis of the historical trading margins of Westpac’s CPS (ASX code: WBCPC) seems to indicate the presence of investors setting themselves up for Westpac’s latest hybrid issue. Trading margins of hybrids typically fall as a call date approaches and theoretically they should approach a point where the yield on the hybrid is roughly equal to BBSW.  At this point, the trading margin is zero. The trading margins of the...

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