The first chart shows the move in trading margins over the past week: Whilst the rally in securities with an expected call date of less than a year has stalled a little, investors have continued to buy securities between two and three years to the expected call date; and Generally investors continued to ignore longer dated hybrids (i.e. hybrids [...]
As it has been almost 3 weeks since the CBA launched their PERLS VIII hybrid issue, now is an opportune time to have a look at how the existing Tier 1 hybrids have fared. The green arrows on Chart 1 highlights hybrids that have rallied over the last three weeks and their trading margins narrowed since the PERLS VIII issue announcement [...]
Westpac released its first quarter 2016 capital and asset update (Pillar 3) on Friday. The common equity tier 1 (CET1) ratio improved by 0.7% to 10.2% on an APRA basis and is 14.3% on an internationally comparable basis. Total capital increased by 0.6% to 13.9% and the capital stack saw a modest reduction in additional tier 1 (AT1, from 1.9% [...]
New Issue: PERLS VIII - Do Not Subscribe On the 16th of February 2016 the Commonwealth Bank of Australia (CBA) announced a new transaction, PERLS VIII (Prospective ASX Code: CBAPE). The purpose of this transaction is to provide funding for the group but more specifically it will be treated as additional Tier 1 capital for regulatory purposes. The indicative size [...]
On the 16th of February 2016, The Commonwealth Bank of Australia announced that it will redeem PERLS III and offer investors a rollover into PERLS VIII. The options for investors holding PERLS III (ASX code: PCAPA) 2016 are: 1. Exchange PERLS III for the new PERLS VIII issue; 2. Redeem PERLS III ($200 face value plus last dividend ) for cash; 3. [...]
On 10 June 2015, Origin Energy held its investor day where management presented its strategy to improve returns in Energy Markets and its action plan for the entire company. It's four main priorities are: Improve returns in the energy markets businesses: In Energy markets (56% of the Group's EBITDA), as demand for gas is due to increase, notably for export [...]
This week was a big week for AGL Energy, as it released its strategic road map ahead of a two-day investor briefing at AGL's Macquarie Generation power plants in the Hunter Valley. It was also the occasion for newly appointed CEO Andy Vesey to outline its plan on how to improve its return on funds employed and hopefully deliver sustainable earnings growth in [...]
S&P revised last week Goodman Group's outlook from Positive to Stable, while at the same time confirming its BBB long-term corporate credit rating. The change of outlook is due to the rating agency's assessment that Goodman's financial policy won't be as financially conservative and would be prepared to increase its look-through gearing to 40-45% in certain circumstances. The rating agency [...]
The chase for yield by self managed super funds has been well documented but despite the warnings by regulators, commentators and analysts about further changes to regulations, bank share prices continued to trade well above their long term average (on a price to earnings multiple basis). In a low interest rate environment this demand for yield is completely understandable, but dividends are purely a function of capital [...]
The last two weeks have seen a severe decline in the price of bank shares, a steepening in the yield curve and a slight widening in Tier 1 regulated Bank hybrid securities. As an example CBA’s PERLS VII is off 6.5% from its issue price and the common equity is off 15% from its high ($96.30). This gives investors the following yield choices: CBA special deposit [...]
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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.
