Hybrids

APRA recently revealed plans to phase out banks’ use of AT1 capital - an atypical event in a sector offering attractive long-term returns

APRA has rung the bell on bank AT1 hybrids. We add our two cents.

Is the banking regulator ramping up bank leverage and risks faced by depositors to protect itself?

A surprising yet sensible proposal from the banking regulator, which will keep insurance hybrid securities in place

As first forecast here in November 2023...

Expected regulatory changes could put further pressure on Australian Bank Hybrids. Consider another type of 'convertible' securities.

Listen to our latest episode of the Complexity Premia podcast on whether we need a hybrid revolution and much, much more...

Markets do not appear to be pricing in the risk of a substantial slow-down in bank bond issuance

Don't move down the capital structure unless you are comfortable with the company's underlying default risk...

Some cheeses have holes in them, some do not. There are also many varieties of hybrids, some of these also have holes in them.

UBS acquires CS, imposing 89% losses on shareholders from 12mths ago, CS bonds/deposits are unaffected while hybrids are written-off

CBA's latest hybrid deal (ASX: CBAPL) looks very expensive, even though it offers a superior 5.79% yield to the franked dividend yield on CBA's shares of 5.51%. Now...

Against a backdrop of economic and geopolitical uncertainty, rising inflation, and interest rates, Australian investors are searching for investments that can...

At the time of writing this article, a major war in Europe was entering its fourth week and the US Federal Reserve had increased interest rates for the first of...

Global hybrids are a fresh frontier among income opportunities offering strong, risk-adjusted returns. While Australian investors may be familiar with domestic...

Against a backdrop of record-high equity markets and low-interest rates, investing for income while seeking to preserve capital is an increasingly common goal among...

Over the last decade, hybrids have produced returns that have been comparable or better than most other asset classes, but for any investor that is only half the...

With spreads largely at all-time lows and sourcing real yield proving problematic, asset allocation is challenging for those with constrained mandates. Flexibility in...

Poor old income investors were some of the hardest hit by the pandemic. It's still uncertain when interest rates will begin to rise, despite market whispers. It's on...

It's been a rocky road for equities over the past 12 months with volatility reaching all-time highs. Meanwhile, fixed income investors haven't exactly been on easy...