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Readers who clicked on the Hybrids section on Monday may have noticed the 3.25% trading margin available from ANZPA, which is a margin comparable in size to those offered by newly-issued hybrids eighteen months ago.
The difference between ANZPA and a newly issued hybrid is of course the difference in the number of years to maturity. ANZPA has a maturity date in December 2016 and typically trading margins drop away as the maturity date gets closer.
YieldReport noticed how some investors must have thought the 3.25% margin available on Monday morning to be a rather good deal. When looking through the margin changes from Friday’s market close through to the close of business Tuesday, it’s hard not to notice ANZPA’s movement:
The chart below shows the change in ANZPA’s trading margin over two trading days and it also shows the latest (close of business Tuesday) margins available from the major banks. (Notice the generally lower margins available on hybrids with maturity dates which are closer.)
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