hybrids

Opinion

Will hybrids be affected by bank capital requirements?

This week, the Australian Prudential Regulation Authority announced higher capital requirements for residential mortgages for the four major banks (ANZ, CBA, NAB, Westpac) and Macquarie, in order to offset mortgage risk

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

Education (basics)

Busting the seven key myths about bonds - Part 7

Myth #7 I own hybrids so I already have an allocation to fixed income

Opinion

FSI and banks – what does it mean for investors in bonds, subordinated debt and hybrids?

With a focus on the recommendations that seek to address the resilience of our financial markets and specifically the FSI’s approach to removing the “too big to fail” implicit guarantee our Big 4 banks enjoy

Opinion

Why hybrids are too hot, term deposits are too cold and bonds are just right

Bonds offer higher returns than deposits without accepting equity-like hybrid risk; with deposit rates continuing to fall, and hybrids becoming increasingly risky, the case to add corporate bonds to a portfolio has become more compelling

Opinion

CBA Perls VII start trading below par

Investors hoping for a quick profit from the CBA Perls VII (CBAPD) on listing were disappointed when the hybrid began trading last Thursday. It closed the day at $97.10

Week in review

There’s more than one way to lose money with hybrids

Last week, ratings agency Standard and Poor’s announced it was reviewing global Basel III compliant hybrids and that it expects to downgrade more than 80 per cent around the world

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

Opinion

Reassess or Reaffirm: Hybrids and Subordinated Debt

Hybrids and Subordinated Debt: What is the issue?