After the blowout in margins on Australian listed notes (commonly referred to as hybrids) many are now asking “are we there yet”? Have we reached a level where there is sufficient return for risk to justify investing? Those who have followed my comments on this area will know that I’ve consistently recommended selling long maturity debt securities and preference shares in the last two years. The August 2014 article The Perils of Preference Shares was written at the time of peak pricing levels. The average margin over bank bills is now nearly double what it was then. For those tempted to dip into listed notes here’s some key points to keep in mind.