NewsBite

Hybrids

This Month

APRA chairman John Lonsdale. The prudential regulator’s plan to phase out bank hybrid securities and replace them with capital it regards as cheaper and more reliable.

Why is APRA trying to blow up the hybrid market?

The prudential watchdog wants to boost bank leverage and raise the risks depositors and taxpayers face in the name of ameliorating its regulatory complexity.

  • Christopher Joye
Banks and investors will be sad to see hybrids disappear.

Where to invest as bank hybrids disappear

Investors have enjoyed juicy yields on bank hybrids but will need to find alternatives after APRA announced the securities would be phased out by 2032.

  • Jonathan Shapiro
APRA chair John Lonsdale says bank hybrids will be phased out.

Why APRA will kill off bank hybrids for good

Australian bank hybrids have been a popular and reliable source of income for investors. But APRA says their time has come.

  • Jonathan Shapiro

APRA calls time on $43b bank hybrid capital era

The prudential regulator said bank hybrid securities would not work as intended during times of crisis.

  • Jonathan Shapiro

June

MST poaches Shaws co-heads to set up hybrids business

Street Talk understands Duncan and Anagnos, who have built Shaws’ hybrids and SMAs business together over the past decade, lobbed their resignations last week.

  • Sarah Thompson, Kanika Sood and Emma Rapaport
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March

Rate cuts are coming. Here’s what retiree investors can do

Once interest rates start to fall, the cash and term deposits that make up large portions of Australian retirees’ portfolios will deliver a little less. Here’s what to think about.

  • Tom Richardson

February

The Australian Competition Tribunal on Tuesday ruled in favour of ANZ’s bid to buy Suncorp’s bank.

ANZ hybrid expected to be upsized to $1.5b after Suncorp win

ANZ is expected to upsize its $1 billion hybrid deal launched last week.

  • Sarah Thompson, Kanika Sood and Emma Rapaport

January

ANZ has a new hybrids deal in the works.

ANZ tipped to target $1b-plus for new hybrids deal

ANZ is expected to target a $1 billion-plus deal size for its latest hybrid issue, which would include a reinvestment slice for holders of ANZ Capital Notes 4.

  • Sarah Thompson, Kanika Sood and Emma Rapaport

November 2023

Westpac is prepping a $1.5 billion hybrid deal.

Westpac tipped to seek $1.5b for new hybrid deal; hires big syndicate

Street Talk understands the Big Four bank is aiming for a circa $1.5 billion deal size and is preparing for launch next week.

  • Sarah Thompson, Kanika Sood and Emma Rapaport

October 2023

It would be Judo’s first AT1 offer, a sign the bank is maturing and is a serious player in the local banking market.

Judo belts out record margin for hybrid capital

Judo’s new hybrid offer is paying a generous interest rate of more than 10 per cent. That has investors equally excited and concerned.

  • Jonathan Shapiro
ASX managing director and CEO Helen Lofthouse.

ASX kicks off meetings for bond deal; three banks mandated

The exchange is in the market with a 3-year Australian dollar, senior unsecured, floating rate benchmark transaction to fund future capital expenditure.

  • Sarah Thompson, Kanika Sood and Emma Rapaport

September 2023

Making it more difficult for retail investors to access hybrids will make capital more expensive for banks.

Bank hybrids are pitting APRA and ASIC against one another

The prudential regulator wants to protect the banking system, while the corporate watchdog wants to protect investors. Bank hybrids are stuck in the middle.

  • Jonathan Shapiro
The role of hybrids has become a global focus since Credit Suisse’s investors were wiped out when the bank was forced into a shotgun merger with UBS.

This is why APRA wants to kill the listed hybrid market

The regulator has put banks and stockbrokers on notice that it intends to rip up the ASX-listed tier one market. The industry is divided on its motivations.

  • Jonathan Shapiro
APRA is consulting on proposed changes to the $40 billion-plus hybrid securities market.

Higher yielding hybrids are coming

It would be preposterous to let retail investors buy highly leveraged bank shares yet restrict them from investing in demonstrably less risky hybrids and bonds.

  • Christopher Joye

APRA sounds alarm on retail obsession with bank hybrids

The regulator is worried bank hybrids may fail to protect the financial system because most of the capital is held by ordinary, not financial, investors.

  • Updated
  • Jonathan Shapiro
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May 2023

CBA is looking to tap credit investors.

CBA to tap credit investors for $750m

The bank is marketing a tier one hybrid security that could raise as much as $1 billion, the first by a major lender since global fixed income markets were rocked by Credit Suisse.

  • Updated
  • Jonathan Shapiro

April 2023

How to work out if your investments are too risky

The cash rate is a useful starting point when assessing the relative merit of assets as it allows you to judge whether the additional return is adequate.

  • Ben Smythe

March 2023

The big banks have collectively issued hybrids worth about $40 billion.

Swiss authorities nuked Credit Suisse hybrids - are yours safe?

Hybrids are marketed as unique securities combining elements of stocks and bonds. But they are under fresh scrutiny amid a series of global banking crises.

  • Emma Rapaport

Should retail investors be insuring Australia’s banks?

Australia is unique in that mums and dad investors, not big bond funds, are the providers of bail-in capital to the banking system. That could be a problem.

  • Jonathan Shapiro

Why central banks rushed to defend credit markets - from the Swiss

By wiping out Credit Suisse hybrid investors at the expense of shareholders, Swiss regulators almost did more harm to the global banking system.

  • Jonathan Shapiro

Original URL: https://www.afr.com/topic/hybrid-securities-1mp5