Fixed Interest Weekly - NAB Capital Notes upscaled to $1.25bn. The completion of the NAB Capital Notes (NABPC) bookbuild has seen the issue upscaled from...

Fixed Interest Weekly - NAB Capital Notes upscaled to $1.25bn. The completion of the NAB Capital Notes (NABPC) bookbuild has seen the issue upscaled from $750m to at least $1,250m. The margin was set at 3.50% above 90BBSW, at the bottom end of the 3.50-3.70% bookbuild range. NABPC follows on from the ANZ Capital Notes 3 (ANZPF) which allocated $850m at the completion of its bookbuild, at a margin of 3.60% above 180BBSW. The ASX listing of ANZPF is scheduled for 6 March 2015, with NABPC listing on 23 March 2015. Given the absorption of new supply has been a major factor to the trading margins on major bank prefs remaining elevated over the past six months, we see the potential for some recovery once this $2.1bn of new supply is fully digested. View the report here: (VIEW LINK)