Weekly trading idea: Buy WBCPE

Weekly trading idea: Buy WBCPE. Any initial selling pressure on the listing of Westpac Capital Notes 2 (WBCPE) should be viewed as a buying opportunity, with the security scheduled to list at 12pm today (Tuesday 24 June). The heavily oversubscribed 2014 issues of ANZPE and SUNPE both posted solid listings and have continued to rally. We would expect a similar trading pattern for WBCPE. We expect WBCPE will be the last of the major bank prefs issued with a margin over 3% (issue margin 3.05%). Locking in an historically high issue margin in the current environment provides the potential for WBCPE to trade at a modest premium.