The Income Strategies team at Shaw & Partners have come up with a recommendation for holders of Westpac Capital Notes 2 (ASX code: WBCPE) to switch to ANZ Capital Notes 3 (ASX code: ANZPG). The switch would result in a lengthening of an investor’s investment period from September 2022 to March 2024 but the Shaws team argues the additional margin was worth it.
Below is a chart which shows how they and other ANZ and Westpac hybrids looked at the close of trading on 25 July.
The other switch idea was for holders of Challenger Notes (ASX code: CGFPA) to switch to Challenger Notes 2 (ASX code: CGFPB). As with the Westpac/ANZ switch, the investment period would be extended, in this case from May 2020 to May 2023. The trade-off was roughly a 0.80% per annum increase in trading margin.