Commonwealth hybrid: going early

24 February 2021

 

Summary: Commonwealth Bank to issue new hybrid security; no upcoming call on existing hybrids until October; first call date in October 2026; initially to pay around 2.75% (annualised, including franking credits), issue margin below low end of trading margin band.   In recent years, when one of a company’s existing hybrids approaches its first call date (or first optional exchange date), speculation turns to the likelihood of a replacement hybrid...

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