Australian (ASX) Stock Market Forum

CBA PERLS V - what is it?

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johenmo said:
I understand it is an acronym for Perpetual Exchangeable Resaleable Listed Securities.
(“PERLS V”), which are stapled securities comprising:
– an unsecured subordinated Note issued by the Bank’s New Zealand branch; and
– a Preference Share issued by the Bank.

Can anyone explain how these work in plain english?
It'd be appreciated.
Thanks
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the keyword is "unsecured", so if things go wrong, byebye money?
 
888 said:
the keyword is "unsecured", so if things go wrong, byebye money?
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Correct. But then we would be talking about CBA being in default and all of ordinary shareholders funds being wiped out. From an Australian perspective, CBA is probably too big to fail and in the event of a disaster would likely be taken over by another bank. However, possible in this scenario that all equity holders would lose 100% and hybrid holders would also be forced to take a loss.
 
I was wondering if anyone had any input regarding this. I have just taken up the offer to buy the Perls V. My father said I am an idiot because they will go down as the other Perls have done. My understanding is that the pervious Perls were purchased when interest rates were high, during their time the interest rates dropped quite considerably thus making them an unattractive investment. As there seems to be no indication that interest rates will drop only go up would these Perls V be considered a better investment than the previous ones. It’s really too late for me as I have them now, however any good constructive advice would be greatly appreciated.
 
lianeisme said:
I was wondering if anyone had any input regarding this. I have just taken up the offer to buy the Perls V. My father said I am an idiot because they will go down as the other Perls have done. My understanding is that the pervious Perls were purchased when interest rates were high, during their time the interest rates dropped quite considerably thus making them an unattractive investment. As there seems to be no indication that interest rates will drop only go up would these Perls V be considered a better investment than the previous ones. It’s really too late for me as I have them now, however any good constructive advice would be greatly appreciated.
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Liane, please read the other comments on this thread as there is some info relevant to your questions.

I think you are right and your dad is wrong about PERLS V, at least I hope so as I have also taken up an entitlement, though I'm still waiting to see if there will be any scale-back of my application.

Basically, the advantage of PERLS V over previous PERLS is the much higher margin rate of 3.4%. This compares with only 1.05% for IV and III and only 0.95% for II. That accounts for why these are valued by the market at less than par at the moment.
 
You also need to look at how long you plan on holding them. If you're not looking at trading them then the face value is not of as much interest. The official rate has just increased. The expectation is the BBSW will increase over time. In the short term the 3 month rate has been a little down including a low last month which appears to be the lowest for some time.

You need to figure out what you want from the investment and for how long. What are your acceptable ranges?
 
Thank you guys for your impute I will go through this thread and read everything. Heres hoping I made the right decision. Its just that sometimes the jargon becomes a little to complicated for me. So I will plough though.
:)
 
Started trading under the ticker CBAPA today at 11 am. Currently selling at just over $205 rewarding investors with a 2.5% stag profit.:p: Looks like this one will have a successful launch.
 
SoBadAtTrading said:
I see its trading under "deferred settlement". Wonder if it's ok to sell now without receiving the despatch allocation notice?
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Yes you can but it is your responsibility to make sure you only sell what you own.

Although I don't know why you would want to sell them as 2.5% is not much of a return.
 
Thanks. Comparing it to it's nearest equivalent WBCPB, i think the current price can go up another percent or two so yeah i guess it would probably be better to wait.
 
nomore4s said:
On this, has anyone got confirmation on how many they have received?
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I got 200 via a Comsec broker, as I wanted to be sure I got what I wanted.

They have been showing on my account as CBAZZ for a few days, no price.

does that count as notification?

He told me he had to cut back people wanting more than that ( although I'm sure special:rolleyes: clients could have got more)

Could have got them commission free thru my SMSF admin, or apparently via my direct CBA holdings, I dont recall recieving any corro re this (CBA holding)

decided just to pay broker commission, too lazy to fill out forms, or muck about on this occassion:eek:
 
awg said:
I got 200 via a Comsec broker, as I wanted to be sure I got what I wanted.

They have been showing on my account as CBAZZ for a few days, no price.

does that count as notification
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The CBAZZ will change to CBAPA overnight They can then be traded on an unconditional, but deferred settlement basis until Monday. Normal trading commences on Tuesday on a T+3 basis

Monday 19 Oct is despatch date.
 
mmmm.... I've applied and BPAY'd for 340 units, but nothing is showing in my trading account.

Should I be worried I have missed out on allocation???

I got mine through Comsec as well.
 
Caliente said:
mmmm.... I've applied and BPAY'd for 340 units, but nothing is showing in my trading account.

Should I be worried I have missed out on allocation???

I got mine through Comsec as well.
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I logged onto link services and my allocation was there but I applied via my CBA holding number, but I'm pretty sure your holdings should come up.

EDIT: CBAPA is now also showing up in my Commsec position summary.
 
I B-payed my wooping 50 and got them they are showing on my netwealth trading account as of yesterday as CBAPA. I did this on the comsec site also.
what does anyone think they will go to.
 
Announcement out this morning with the first distribution rate for payment on 1st of Feb 2010. Expected to be fully franked.

First distribution
The first distribution will be $3.0657 per PERLS V security on 1st February 2010. The distribution rate of 5.0862% was calculated as follows:
Market Rate1: 3.8660 % p.a.
Plus Margin: 3.40 % p.a.
7.2660 % p.a.
Multiplied by (1-Tax Rate): .70
Distribution Rate: 5.0862 % p.a.
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i am extremely worried now as there is no indication whatsover in my portfolio that I have any registered units.

I called the bank and they tell me they'll follow it up and call me.

I have to say I'm extremely disappointed - I've paid $68000 up front through BPAY, via the comsec offer site using a "valued customer code" to apply and I have not been allocated a SINGLE unit.
 
Caliente said:
i am extremely worried now as there is no indication whatsover in my portfolio that I have any registered units.

I called the bank and they tell me they'll follow it up and call me.

I have to say I'm extremely disappointed - I've paid $68000 up front through BPAY, via the comsec offer site using a "valued customer code" to apply and I have not been allocated a SINGLE unit.
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Have you checked the link site? Also I think there is 1800 number to call for PERLS customer relations
 
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