Our Fixed Interest Weekly Trading Idea: Buy NABPC An historically high margin of 3.50% for a security with a 5 year call date paying quarterly income. Impact of RBA Feb 2015 rate cut. The 0.25% cut in the cash rate to 2.25% has seen NAB reduce its deposit rates, with 1 year term deposits falling 0.40% to 2.70%. Investors willing to accept the incremental risks moving from a Government guaranteed deposit can still achieve grossed up yields in the high 5s (~5.85%). Sentiment shift as investors chase yield. No further hybrid issuance likely from NAB, ANZ and CBA in 2015. NABPC bookbuild bids due 4pm Monday 23 February 2015 Click here for the full report: (VIEW LINK)