The remarkable turnaround in performance of major bank hybrids (also known as Tier 1 securities) continued last week post the Westpac Capital Notes 4 book-build. One market participant declaring “this is the heaviest demand for a hybrid I have seen in 3 years here”. Whilst the first hybrid issue of 2016 (issued February) proved to be the catalyst for [...]
On the 17th of May 2016 Westpac Banking Corporation (WBC) announced a new transaction, Westpac Capital Notes 4 (Prospective ASX Code: WBCPG). The purpose of this transaction is to provide Regulatory Capital for the group but more specifically it will be treated as additional Tier 1 capital for regulatory purposes. The indicative size of the offer is $750 million but [...]
With the AFR’s Street Talk yesterday reporting that Westpac Banking Corporation is on the verge of announcing the second new Tier 1 Hybrid issue of 2016, presumably to replace the $762.7 million Westpac Trust Preferred Security (TPS) (ASX Code: WCTPA), this is an opportune time to revisit how this segment of the ASX-listed hybrid universe has fared since the first [...]
In light of the new Peet Bond issue announced last week, we thought it would be an opportunity to discuss what are ‘Simple Corporate Bonds’ (SCB). In 2014 in Australian Parliament passed the Corporations Amendment (Simple Corporate Bonds and Other Measures) Act. This amendment aimed to make it easier for both companies seeking finance and retail investors to access the [...]
In its third quarter update, Goodman Group reaffirmed its full year guidance. During the quarter, Goodman successfully attained 100% ownership of the operating platform in Brazel from WTorre. Despite recent headwinds, the group remains committed to Brazil as management believe that the warehouse market is oversupplied and middle class population growth remains strong. Goodman experienced growth in external asset [...]
Next week sees bank reporting season for the 2016 half year. This begins on Monday 2nd May with Westpac, followed by the ANZ, NAB & Macquarie Group (reporting on the 3rd, 5th and 6th May respectively). Broadly speaking, the market is still expecting positive cash earnings and net profit after tax (NPAT) growth this reporting season. Net Interest Margins (NIM) [...]
As most of us know, the fixed income market is generally less liquid and transparent than equity markets. However, fixed income exchange traded funds (ETFs) can help bridge the gap between these asset classes. These ETFs cover a broad range of fixed income type securities. Some ETFs are issuer specific (i.e. corporate, government or semi-government Securities), coupon specific (i.e. fixed [...]
The first quarter of 2016 was a tale of two halves for the ASX listed hybrid universe. January started poorly as the Australian share market followed their global peers as a risk-off tone permeated the financial markets. ASX listed hybrids followed suit with corporate issued hybrids faring much worse than their bank issued peers. The risk-off tone continued into [...]
Trading margins for the majority of ASX listed notes (hybrids) of the four major Australian banks have been rising for most of the past year and a half, the low point being the 18th of August 2014 PERLS VII (ASX code: CBAPD) transaction issued at 280 basis points over swap. The peak in trading margins was reached on the 15th [...]
We have updated our recommendation for Multiplex SITES (ASX: MXUPA). For subscribers to view the full report click here. To sign up for a free trial and get access to the report click here.
An employee-owned financial services provider focused on the Debt Capital Markets.
An employee-owned financial services provider focused on the Debt Capital Markets.
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ABN 31 164 148 467 ‧ Important Information
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
