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Hybrids

January

Bank hybrids have typically paid investors 3 per cent to 4 per cent above bank bills.

Race is on to plug $43b bank hybrid market

Doctors, self-funded retirees and wealthy families are going to have to find somewhere else to make 7 or 8 per cent a year. The first bank hybrids roll off in March.

APRA chairman John Lonsdale has called an end to hybrid securities, despite warnings it could lead investors into riskier products.

Asset managers see opportunities in APRA’s bank hybrid ban

Investors will have to find somewhere to park $43 billion in capital after the prudential regulator decided to phrase them out. Some firms see their chance.

December 2024

Being forced into common equity at a time when the bank sector is trading at all-time high valuations poses additional risks, writes Geoff Wilson.

Hybrid ban will force retail investors to take more risk

APRA’s retail hybrid ban is an attack on retail investors who trust the bank regulator and the Australian banks and invested in bank hybrids in good faith.

Reserve Bank governor Michele Bullock will probably cut rates before the federal election.

Why the RBA will follow the Fed’s election playbook

The Reserve Bank of Australia appears set to ease interest rates in a move that will support its political masters heading into a problematic poll.

APRA chairman John Lonsdale has called time on popular bank hybrids.

APRA winds down $43b bank hybrid market, angering investors

The prudential regulator says other forms of capital are safer and make it easier for issuers to respond to future crises without bailing in retail investors.

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APRA chairman John Lonsdale.

D-day for bank hybrids draws a line under divisive APRA process

The prudential regulator is due to give the market an update on whether it will kill bank hybrids. Some people wonder whether it has gone too far.

October 2024

Hybrids are inherently safer and less complex than equities from a pure valuation perspective.

Trading regulatory risk in the $40b hybrid sector

Investors are puzzling over what to do with their hybrids following APRA’s proposal to phase out the sector.

September 2024

Finding its footing: A pedestrian on Wall Street near the New York Stock Exchange (NYSE) in New York, US, on Wednesday, Sept. 18, 2024.

Riskiest real estate bonds are beating Nvidia’s returns

It’s a turnaround few could have predicted when landlords around the world were creaking under the weight of higher interest rates and changing work habits.

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.

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.

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.

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.

June 2024

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.

March 2024

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.

February 2024

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.

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January 2024

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.

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.

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.

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.

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.

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