YieldReport is rather fond of yield-versus-maturity scatter diagrams as they show at a glance where the anomalies lie when they exist. Evans and Partners’ Head of Income Products, Michael Saba, recently produced a scatter diagram for major bank hybrids (see below) and then made a few observations.
“The scatter diagram shows where the value is. Switch from ANZPC to WBCPC or CBAPC. Around the CBAPC maturity WBCPD offers better value. With the mid-pack margins about the same as longer-dated, sell WBCPE, CBAPD or ANZPF and gain two years less maturity risk in NABPB or WBCPF.”
(Refer to YieldReport hybrids tables for further details)