Weekly Trading Idea - Buy NABPA

Weekly Trading Idea - Buy NABPA. We currently see value in some of the medium dated securities, particularly when compared with the spreads to senior debt. At $98.80, NABPA (March 2019 call) has its 3.20% issue margin boosted to a trading margin of 3.53%, which is higher than the 3.50% bookbuild margin set on the new NAB Capital Notes (March 2020 call). It has been common over recent years for there to be a 2.00% margin spread between similar dated ASX listed prefs and wholesale senior debt. NABPA's current 3.53% trading margin represents an elevated 2.86% spread above the 0.67% trading margin of Westpac Feb 2019 wholesale senior debt. Click here to view the full report: (VIEW LINK)