Trading margins of some hybrids are at levels which are close to 2017 highs and as such, Evans and Partners’ Michael Saba thinks there is some value for investors. Saba is especially interested in three of the shorter-dated ones: CBA’s PERLS 6 (ASX code: CBAPC), Westpac Capital Notes (ASX code: WBCPC) and Westpac Capital Notes 2 (ASX code: WBCPD). This view was supported by Shaw’s Income Strategies desk, which referred to these securities as “attractive relatively defensive investment option[s]” a few days earlier.
Here’s how the trading margins of the three securities have performed since late October 2016. As at 23 June 2017.
