Hybrids

It's been a rocky road for equities over the past 12 months with volatility reaching all-time highs. Meanwhile, fixed income investors haven't exactly been on easy...

We have deep dived into fixed income markets, searching for value before the ruck forms. Despite an awfully weak inflation print, we have little faith in the long...

One significant event risk that we have been actively positioning for is a tsunami of senior bond issuance from Australia’s banks as they seek to gradually repay the...

In contrast to Macquarie's new 6.5 year, sub-investment-grade hybrid security, which (unusually) priced with a negative new issue concession inside the prevailing...

NAB has announced that it will repay its long-outstanding $2 billion National Income Securities (ASX: NABHA) on 15 February 2021 at full face value (ie, $100 plus the...

In the AFR I write that after experiencing the mother of all “known unknowns” via this awful, one-in-100 year pandemic, you’d be brave to venture into the forecasting...

Friday will bring the last of the recent hybrid listings in the form of NAB's circa $2 billion plus* Capital Notes 5 security (ASX: NABPH). The big question is where...

While I doubt whether any investors noticed, ASX bank hybrid risks likely just fell in a long overdue way. In particular, the probability of a bank hybrid being...

Australian income investors used to be lucky. From 1980 to the middle of the last decade, they could achieve returns of more than 3% above the rate of inflation simply...

This is a short video interview with Pinnacle's Gerald Willeston on: "Where to from here?" In this chat, I quickly recap where credit spreads have gone, and potential...

In the AFR this weekend, I write that many investors who exited assets in March, or who felt they profited from the catastrophic price falls in the first few weeks of...

The $500 million Macquarie Bank Capital Notes 2 (ASX: MBLPB) hybrid begins trading on Wednesday, and it will be fascinating to see how it performs. This new deal was...

In this interview with Pinnacle's Gerald Willeston I discuss the role bank-issued hybrids can play in a portfolio relative to (1) global high yield bonds and (2)...

In the AFR today I explain why ever since I have pulled out my empirical “shotty”, an intellectual 12-gauge, the housing bears have started running for the hills. In...

In the AFR today I write that for those willing to fade the extreme moves in financial markets during March, April offered up an immensely profitable case of so-called...

I was surprised to hear the suggestion that the blow-up of Virgin Australia's ASX listed 5 year corporate bonds (or floating-rate notes) was somehow a disaster for the...

The listed Virgin Australia bonds (VAHHA) look set to go down as one of the worst investments ever to appear on the ASX. After being issued in November 2019, the bonds...

It’s often said of investing that a rising tide lifts all boats. However, this isn’t always true and the uneven bounce back in debt markets in the last two weeks has...

These are some exciting times for investors across the banks' capital structures, spanning equity, hybrids, subordinated bonds, senior bonds, deposits, and the safest...

Challenger’s shortest dated hybrid, the $345 million Challenger Capital Notes (ASX: CGFPA), which has its call or repayment date coming up on 25 May 2020, has been...