Australian (ASX) Stock Market Forum

Hybrid Securities

Jump to new
PXUPA seems to have rallied a bit since the announcement of resumption of payments.

PPX losses have been much reduced. FIIG sometime this year in their weekly The Wire had a bit of a writeup about changes in financial position and their recent staff reductions.

That said PPX are still making losses at last report.

BTW, FIIG is definately worth the effort for those that want to read up about hybrids. I got the phone call when I went through their web signup and made it clear I wasn't interested in buying anything through them - only reading their research and person on the phone seemed ok with that.
 
hmm, i've whittled it down to 2 at this stage which suit my risk profile for my 1st hybrid investment.

AAZPA or MXUPA. Both seem much of a muchness to me, but i guess MXUPA has more capital gain upside (which means the market doesnt currently like it as much...)

Might just flip a coin as i only want to buy one at this stage
 
Re: GNSPA - Hybrid Securities

'The Directors expect to either convert the FORESTS to ordinary equity or undertake an on or off market purchase of the FORESTS at or around the then current market price following completion of restructuring and refinancing transactions. The transactions are expected to be finalised in the first quarter of the 2012 calendar year.' (source: Gunns Director's Report 15 Feb 11)

I thought the only options Gunns Directors had was to convert GNSPA to GNS shares at $102 or to cash out at $100 face value. While the Directors can always purchase on-market or make an off-market offer, surely GNSPA holders are not bound to accept such offers 'at current market prices' if they represent reduced value. What happens to the rump of GNSPA holders who hold out for the full $100/$102 conversion?
 
So how will this new deal between Seven and WAN effect the notes? Will they be bought back or stay active?
 
I don't think anything will change with SVWPA (TELYS4).

I also don't think they will get bought back in May 2011 but they do have a right to buy back at any dividend time. It seems business as usual.
 
ricee007 said:
Anyone have any opinion on whether or not recent Bell Bay approval is goood, or bad, for GNSPA holders?
Click to expand...

It depends on the level of risk you are prepared to accept. The vast array of left wing protesters worries me, and will make capital backers difficult to secure.
 
Calliope said:
It depends on the level of risk you are prepared to accept. The vast array of left wing protesters worries me, and will make capital backers difficult to secure.
Click to expand...
Let me rephrase.

Does anyone have any thoughts on whether or not building the Bell Bay pulp mill, will be good for GNSPA holders or not?
 
MXUPA looking to break out if it can close where it is now. Will be a yearly high, albeit on low volume
 
prawn_86 said:
MXUPA looking to break out if it can close where it is now. Will be a yearly high, albeit on low volume
Click to expand...
Yea, do you understand why? I don't.

I mean, I'm happy with my modest holding of 35 MXUPA... but I don't understand the last few green days.
 
Would love to find out the highest dividend/coupon paying hybrid asset out there? Anyone aware were to find a complete list?
 
tome said:
Would love to find out the highest dividend/coupon paying hybrid asset out there? Anyone aware were to find a complete list?
Click to expand...

Try FIIG. I suppose that you are aware that the higher the dividend, the higher the risk.
FIIG rates them according to risk.
 
Bill M said:
Bought some more CBAPA today on a down spike. Someone had to offload in a hurry, they sold cheap. Bought at $207.50, watch where it will be in 2 Months time.;)
Click to expand...

Hi Bill, only just found this thread. I bought some CBAPA probably around the same time as you in Feb. I am interested in your logic as to their likely price increase? Thanks.
 
Reasons said:
Hi Bill, only just found this thread. I bought some CBAPA probably around the same time as you in Feb. I am interested in your logic as to their likely price increase? Thanks.
Click to expand...

Too late to sell now as it's just gone ex dividend. The logic behind it is that hybrids tend to run up quite well as they approach their ex dividend date. At the last quater this stock got up to $214.50, this time it got to around $211. Sometimes the run up is much higher than warranted, this time it was lower. The idea was to see it run up to $214 again and sell it. I have capital losses from the GFC and the capital gains I would have made would therefore have been tax free.

This time it just didn't run up as hard and I did not sell. The dividend is what I originally bought it for so unless the capital gains are worthwhile I will continue to hold, hope that helps.
 
Bill M said:
Too late to sell now as it's just gone ex dividend. The logic behind it is that hybrids tend to run up quite well as they approach their ex dividend date. At the last quater this stock got up to $214.50, this time it got to around $211. Sometimes the run up is much higher than warranted, this time it was lower. The idea was to see it run up to $214 again and sell it. I have capital losses from the GFC and the capital gains I would have made would therefore have been tax free.

This time it just didn't run up as hard and I did not sell. The dividend is what I originally bought it for so unless the capital gains are worthwhile I will continue to hold, hope that helps.
Click to expand...

I do hold several hybrids at present and decided to see what this would do on ex-div. I am still on the right side of it at present, but hindsight says it was probably the less smart move.

It is interesting how well most are holding though ex-div at present in bumpy market conditions. I am getting a severely itchy trigger finger on GMPPA.

CBAPA still has a few years to run before conversion and grossed up at ~8% is still not too bad at ~$207. I was just interested to see how you were thinking about it (possible secret formulae and all that :)) Thanks.
 
Reasons said:
It is interesting how well most are holding though ex-div at present in bumpy market conditions. I am getting a severely itchy trigger finger on GMPPA.
Click to expand...

I own this one, bought the float at $100 ouch:eek: However topped up when it was around $46. My average buying price is $93. It went down to $9 during the GFC, people thought Goodman was going fold, imagine if you bought it at that? GMPPA never missed an interest payment, so much doom and gloom was built into this one, it was over done.

If you want to look at a perpetual note right now check out SBKHB. I own these too, at todays price it's unfranked interest is around 8% as well.
 
Bill M said:
I own this one, bought the float at $100 ouch:eek: However topped up when it was around $46. My average buying price is $93. It went down to $9 during the GFC, people thought Goodman was going fold, imagine if you bought it at that? GMPPA never missed an interest payment, so much doom and gloom was built into this one, it was over done.

If you want to look at a perpetual note right now check out SBKHB. I own these too, at todays price it's unfranked interest is around 8% as well.
Click to expand...

Thanks for the lead, I did not have any of SUNs fixed products covered in my spreadsheet; and you are a lot braver than me holding on like you did during the big dipper.

Out of interest, I don't know if it has been mentioned elsewhere, but Bell Potter also do a fairly good fixed interest summary like FIIG's 'The Wire' and the reports have a bit more detail in terms of BBSW, margins, dividend obligations, etc.

The prospectus on SBKHB is f'n hopeless I have decided. I know it is a 90 BBSW, 0.75% margin, pays interest so no franking credit. I can't see anything on their obligations should they ever choose to buy back - acknowledging they are perpetual?

SKBPB looks interesting and is paying well on a grossed up basis. Have only done the figures using Bell Potter data and not had time yet to read the undoubtedly well written prospectus.
 
Top