Evans and Partners’ Head of Income Products, Michael Saba, is suggesting those who are interested in short term investments look at Suncorp CPS 2 (ASX code: SUNPC). He thinks Suncorp’s recent $300 million issue of new capital notes may have caused holders of Suncorp’s other ASX-listed hybrids to sell them in order to fund the new notes. “Subsequently margins have widened on two of the listed Suncorp securities. As shown below, the margins for SUNPC and SUNPD have risen this week, possibly as investors fund the new issue via the old.”
