Opinion

A word of warning about hybrids

Despite repeated warnings from ASIC, fund managers and fixed income specialists such as FIIG, new style “bail-in” hybrids like CBA’s PERLS VII continue to be promoted as fixed income. They are not fixed income in our view

Opinion

Switch from complex bank hybrids to Infrastructure Debt

FIIG has been leading the fixed income industry’s debate about whether some of Australia’s hybrids are good value. At the core of our argument is the complexity that comes with the right of the banking regulator to convert these hybrids into equity, for example “bail-in” hybrid investors’ money, rather than have government “bail-outs”

Opinion

Hybrid prices to fall further

Investors may experience further price volatility as a result of the S&P downgrades and the market reassessing the “bail-in” hybrids risk in line with international investors assessment

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