bank hybrids

Westpac's Landmark Hybrid Impresses

Christopher Joye

In the AFR I argue that Westpac's landmark US$1.25 billion hybrid issued into the US market this week, which was initially 11x oversubscribed, will reduce the bank's need to issue future hybrids on the ASX and thereby choke domestic supply. This 10 year hybrid was also priced at a credit... Show More

What the collapse of Spain’s sixth largest bank means for the sector and why we should all be watching

Jeff Thomson

Spanish banks have until recently been an attractive way for investors to play regional economic recovery and rate normalisation. The real estate market in Spain is in recovery mode and prices remain significantly below pre-crisis peak levels (unlike many other countries, including Australia). Domestic Spanish banks generally remain highly leveraged... Show More

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No more hybrid duds, please

Christopher Joye

In The AFR I argue that it's time for the major banks to get "long-term greedy"---as my former Goldman Sachs bosses would implore---when it comes to pricing new deals in the fickle ASX hybrids market. Current market pricing implies hybrids are trading around fair value and smart hybrid issuers will... Show More

Hybrids are still cheap

Christopher Joye

In The AFR I publish new research on the bottom-up valuation models we use to price ASX hybrid securities to determine whether they are cheap or expensive given high-profile hedge fund manager Michael Hintze's claim this week that the sector is attractive. While we employ a range of top-down regression-based... Show More