Thanks awg....i will ring ANZ. Previously I rang Commsec and I was told that I had missed out and that maintaining ANZ's shareholders register was not their responsibility. I didn't take that any further mainly because the $$ involved was not very big.
Ok.Just wondering what peoples thoughts are on the new ANZ Convertible Preference Shares. I don't know alot about this sort of investment and would like to know what the pros and cons are.
I'm going to assume that you haven't been following ANZ then?My own personal view, not based any thing more than a gut feeling
n July, ANZ completed a $4.7Bn equity raising that involved a Share Purchase Plan (SPP) that was three times oversubscribed. Mike Smith, CEO, described it as a “strong endorsement of ANZ’s super regional strategy”. Since then, ANZ has purchased $687M of RBS’s Asian assets and $1.76Bn of the wealth management and life insurance joint venture from ING.
I think CBAPA (perls v) started as $500m or $750m, and ended up accepting $2Bn....I'm very interested in buying a block of these new CPS2's for my old old lady as I expect them to give her a quite good income stream as interest rates continue to rise.
IF YOU DON'T GET SCALED BACK, YOU ARE COMMITTED TO PAYING FOR THEM.With regard to subscribing, should I expect to get scaled back, and thus would you think it would be sensible for me to over apply to ensure we get allotted the desired amount?
Should we not get scaled back, are we under any obligation to pay for the full amount we applied for or can we just take the desired amount?
Unrelated to your current discussion, but its emerged in the press that ANZ may be a likely bidder for AXA Asia Pacific Holdings depending on how the AXA Group/AMP bid evolves.
Just wondering what peoples thoughts are on the new ANZ Convertible Preference Shares. I don't know alot about this sort of investment and would like to know what the pros and cons are.
Just a quickie,
I'm very interested in buying a block of these new CPS2's for my old old lady as I expect them to give her a quite good income stream as interest rates continue to rise.
With regard to subscribing, should I expect to get scaled back, and thus would you think it would be sensible for me to over apply to ensure we get allotted the desired amount?
Should we not get scaled back, are we under any obligation to pay for the full amount we applied for or can we just take the desired amount?
It may very well be related.
As noted above, ANZ don't appear to need more capital at this stage unless they have further major acquisition plans. We know that they intend to grow but we don't know we don't know any details.
Thanks for the link. Very interesting article. To be honest, I don't see AMP taking the whole lot either. What I do think is interesting is AXA is going after AXA APH when AIG and ING are in play.Here's Stephen Bartholomeusz' take on how the Australasian part of the AXA business may become contested.
The Asian business is spoken for - the French parent has a firm hold via its majority holding - but others may bid against AMP for the rest.
Personally, I don't see ANZ being interested in this. Their main interest is in expansion in Asia, which isn't possible here, and Mike Smith is unlikely to enter a bidding war for the local business. Still, you never know!
http://www.businessspectator.com.au...Pacific-pd20091109-XM3UC?OpenDocument&src=kgb
I am an investor of these type of securities. The cons are that the security may trade under face value. If this happens and you need your money you will have to sell on market at a capital loss. During the GFC nearly all of these securities crashed and if you wanted your money back you would have made a loss.
All in all it is a reasonably safe investment (as long as ANZ doesn't go belly up) which will gross you about 7% today but rates are going up and as they do so will your interest rate on this investment which will give you higher returns, good luck.
No worries. It's either talk preference shares, or study for tomorrows Property Law exam.... Shares win. NCIS: LA in 5 minutes though.I have a couple of follow up questions, and thank you for your previous answers. I am new to preference shares.
Yep, 100% fixed. Will be issued at $100, come heaven or hell. That's kind of irrelevant though. I mean, if the price (face value) was $200, and you bought $5,000 worth and got 10% interest a year... you would get 25 CPS2, each giving interest of $20 a year.... = $500.1) The issue price is fixed at $100 no matter now many bids they receive?
Correct. Well, 'approximately 3.1-3.3%', we will know soon. I would guess 3.1%, but.2) The way the dividend is calculated is a margin of 3.10-3.30% + BBSW.
Yes, no, maybe.BBSW is based on RBA interest rates yes?
Well, if RBA raised interests rate tomorrow, the 90dayBBSW would rise (assuming it hadn't factored in a rate increase).... Lets say the 90dayBBSW rate was, say, 100% (ridiculous, but, work with me). That means every year, ANZ will give every CPS2 owner 3.1%+100% in interest... or, $103.10 per year. If ANZ was giving everyone $103.10, every year, for 7 years... if you give them $100 now.... they will obviously be worth much, much higher than $100. Ergo, price increases.Theoretically, what should I expect to happen to the market price of the CSP2's in the event of changes in the official interest rate/BBSW?
1) The issue price is fixed at $100 no matter now many bids they receive?
2) The way the dividend is calculated is a margin of 3.10-3.30% + BBSW. BBSW is based on RBA interest rates yes?
Theoretically, what should I expect to happen to the market price of the CSP2's in the event of changes in the official interest rate/BBSW?
I would've thought increase in IR would lead to increase in price of CSP2 as people arb out the yield differentials between fixed rate preference shares/bonds and the floating rate pref's/bonds? Or do I have it completely wrong?
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