Hybrid Securities

[prawn_86]

OUt of interest does anyone know the highest yeilding hybrid on the ASX at the moment? Purely looking at yeild, risk not an issue for the reason i need to know

[qldfrog]

I have some HLNG :HLNG NOTES 11.25% CN
not sure it is the highest but not a bad return since I bought them

[prawn_86]

What are peoples thoughts on the new Suncorp and also Bendigo Bank offers out?

[YELNATS]

OUt of interest does anyone know the highest yeilding hybrid on the ASX at the moment? Purely looking at yeild, risk not an issue for the reason i need to know

I like SVWPA Seven Group Holdings TELYS4, current price $83.55, last two 6-monthly dividends total $6.69 plus fully franked equals a yield of 11.4% for a super fund in pension phase. Also due to pay another divi soon, by end-Nov. I topped up further last Friday.

[Bill M]

I like SVWPA Seven Group Holdings TELYS4, current price $83.55, last two 6-monthly dividends total $6.69 plus fully franked equals a yield of 11.4% for a super fund in pension phase. Also due to pay another divi soon, by end-Nov. I topped up further last Friday.

I own these too and I am very happy with the dividend too.

On another note, I got a letter last week from Goodman. The meeting of PLUS (GMPPA) holders approved all resolutions. PLUS will now be referred to as "PLUS ll". The margin will increase to 3.90% (up from 1.90%) over the three month Bank Bill Swap Rate. I am very happy to be holding these and will quite happily accept the extra distributions.

[ricee007]

What are peoples thoughts on the new Suncorp and also Bendigo Bank offers out?

I tend to agree with http://www.smh.com.au/money/hybrids-...005-274fa.html

Suncorp CPS2 offers a higher margin than other bank convertibles with greater potential to mitigate losses in distressed times. From a value perspective, we'd still avoid it, but this is an interesting option for those buying bank shares for their high yields. It's also a huge improvement on past hybrid offers.

Though, if Bendigo & Adelaide Bank offer 5.5% above BBSW, I may get some (assuming we can find out the price before committing to purchase). Bookbuild is expected to show 5-5.5% margin (per http://www.theage.com.au/business/ma...924-26ghc.html ). Even if BBSW drops to 3%.... 8.5% per annum... drop $5k, get $425 a year... not bad. IIRC, BBSW is 3.19% at the moment?

So, at the moment, buying them now, selling them in a year at $100, 5.5% margin, would result in a pretty nice approximately $415 profit, after paying for brokerage.

HLNG at about a 10.7% yield looks fairly tasty to me?

[ricee007]

Come to think of it, I am liking MXUPA.

Just viewed their latest financials (whoops, should have done it when they came out:P?)... Liabilities decreased from $3404.3Mn to $2903M -a greater than $500m reduction in just 6 months. Assets have dropped $298.2m in this time... but, as a MXUPA holder, I'm rather happy with that ratio!

Net profit attributable to Brookfield Australia Investemnt Group was $175.5M for the 6 months to 30 June 2012,

Margin is 3.9%... but trading at $76. Call BBSW at 3.19%, and you are looking at circa 9.3%...

[prawn_86]

Come to think of it, I am liking MXUPA.

Just viewed their latest financials (whoops, should have done it when they came out:P?)... Liabilities decreased from $3404.3Mn to $2903M -a greater than $500m reduction in just 6 months. Assets have dropped $298.2m in this time... but, as a MXUPA holder, I'm rather happy with that ratio!

Net profit attributable to Brookfield Australia Investemnt Group was $175.5M for the 6 months to 30 June 2012,

Margin is 3.9%... but trading at $76. Call BBSW at 3.19%, and you are looking at circa 9.3%...

Yeh i hold some MXUPA and have been considering topping up with more. Much better than bank interest...

My only concern is that IR will continue to fall meaning yeild will continue to fall also (but will still be better than bank interest)

[Toeknee]

http://www.asic.gov.au/asic/asic.nsf...s?openDocument

http://www.asic.gov.au/asic/asic.nsf/byheadline/12-207MR+ASIC'S+hybrids+warning%3A+don't+be+dazzled%2 C+be+wary+of+the+risks?openDocument

These links may come in handy - Sorry if repost.

[ricee007]

MXUPA went to a 12 month high today, and ended 2c from that high, with a close of $79.50.

Which is nice because I last purchased at $78.70 on 31/12/2010...... so, two years later, $0.80 capital gain....

But, of course, had around 10-11% dividend yield on it

Made $5.51 capital gain on these back in 2009, holding them for 6 weeks. Reckon is was only my second capital gain, so I am quite fond of these!

[Bill M]

Hello hybrid investors, how is it all going?

I got an email today from Westpac Online Investing advising that the Westpac Capital Notes Offer is coming Soon.

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The Margin is expected to be in the range of 3.20% to 3.40% per annum (to be determined under the Bookbuild)

Distributions are expected to be fully franked.

Distributions are scheduled to be paid quarterly in arrear beginning on 8 June 2013.

More details at this link: https://onlineinvesting.westpac.com....ding/IPOs.aspx

---

Comparing it to similar products it will probably trade just above issue price. With current interest rates so low I think I will be participating in this offer.

I also topped up on ANZPA this week as the price dropped slightly and a distribution is coming in February.

How is everyone going? What are you buying? Cheers.

[prawn_86]

Not exactly a hybrid by strict definition, rather a listed interest security - AKY


Bought to my attention by Sydboy in the LT Investing thread. Does anyone have any further thoughts or opinions? Are they likely to return capital of that amount each half or was it a once off that is making the yeild look so good at the moment?

[robusta]

Not exactly a hybrid by strict definition, rather a listed interest security - AKY


Bought to my attention by Sydboy in the LT Investing thread. Does anyone have any further thoughts or opinions? Are they likely to return capital of that amount each half or was it a once off that is making the yeild look so good at the moment?

I could be wrong but a glance at recent announcements looks like a lot of the yield is from capital return, AKY is trading at a small premium to NTA at the moment.

[ROE]

Hello hybrid investors, how is it all going?

I got an email today from Westpac Online Investing advising that the Westpac Capital Notes Offer is coming Soon.

---

The Margin is expected to be in the range of 3.20% to 3.40% per annum (to be determined under the Bookbuild)

Distributions are expected to be fully franked.

Distributions are scheduled to be paid quarterly in arrear beginning on 8 June 2013.

More details at this link: https://onlineinvesting.westpac.com....ding/IPOs.aspx

---

Comparing it to similar products it will probably trade just above issue price. With current interest rates so low I think I will be participating in this offer.

I also topped up on ANZPA this week as the price dropped slightly and a distribution is coming in February.

How is everyone going? What are you buying? Cheers.

I join you on this one...I got too much cash sitting around at call for much less so
I take a calculated risk if I need the cash I can sell the notes.....

with the rate environment next 6-12 months I dont expect this note to drop but probably increase as
we approach first payment date.

I am not a notes player but I like my cash at call get a bit more juice, waiting for the day a stock
dropped on my lap at a price I like :-)

[boofhead]

The Westpac Capital Notes, WBCPD will have a margin of 3.2%. Seems all the majors can push their hybrid margin towards the bottom.

[ROE]

If people want more details analysis
http://www.morningstar.com.au/s/docu...BCPD300113.pdf

[ROE]

Look like there is huge demand for The Westpac Capital Notes
it now close only a few days after it open...

cant be bad for the notes price once it floated

[Bill M]

Look like there is huge demand for The Westpac Capital Notes
it now close only a few days after it open...

cant be bad for the notes price once it floated

How do you know it has closed already? There is no mention of that on Commsec or Westpac Online Investing site. It appears as though those 2 are still taking applications, so what's the deal?

On the Westpac Online Investing site I put in for some yesterday, paid for it and my application was taken.

By the way, a similar offer is coming out with NAB, the new NAB CPS offer. I will get some of those for sure as I am a shareholder. Who said there is no money around? Plenty of cash going into these.

[ROE]

How do you know it has closed already? There is no mention of that on Commsec or Westpac Online Investing site. It appears as though those 2 are still taking applications, so what's the deal?

On the Westpac Online Investing site I put in for some yesterday, paid for it and my application was taken.

By the way, a similar offer is coming out with NAB, the new NAB CPS offer. I will get some of those for sure as I am a shareholder. Who said there is no money around? Plenty of cash going into these.

Still Open yesterday close today I cant apply for it on Comsec any more and westpac you just get the infor but no place to apply for it...

[Bill M]

Still Open yesterday close today I cant apply for it on Comsec any more and westpac you just get the infor but no place to apply for it...

Oh ok, looks like I just got in and probably because I use them as a broker I got the broker allotment. The NAB one is coming up very soon, be ready for it, cheers.