NAB - National Australia Bank
- Thread starter JetDollars
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Some investors preferred NAB over BOQ. Said that NAB has better qualities in its asset base compared to BOQ.... I hold both because of diversification : one is a major and BOQ being a regional bank. Then I too like both because these two currently offer the highest yield at current prices,...Anybody else doing the same ?
Knobby22
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I hold Ben but I sold some earlier in the week.
Think the banks are getting pricey.
Think the banks are getting pricey.
Comparing bet NAB and BOQ, I noticed that NAB would drop with a higher rate than BOQ when a drop takes place. But when Financials are gaining, NAB would run-up faster than BOQ. What other bank counters have dropped by more than 6% since this sector weakness started sometime end of last wk ?
NAB and BOQ keeps dropping below my Average Price,.. but the hesitation to buy more and average further down is there, in case the prices drop further. Perhaps for long term holds, the yield matters more, and the fear should be that the dps should not drop instead of the share price dropping.
How stable is the dps for each counter here ? Any ideas please ?
How stable is the dps for each counter here ? Any ideas please ?
I'm tempted too, but I'll wait and see which way the trend - and especially the RSI - breaks before buying more.
Tq oldblue,... the slight risk with yr strategy is if the RSI breaks in an unfavourable manner, then the ctr would run-up real fast before we manage to buy-in. Of course, if it breaks downward, then this would give us opportunities to buy more.
tinhat
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I've been long NAB for many years now and kept accumulating up to some point last year (can't remember when). Been enjoying a >10% grossed up average yield for many years now. There might be a time to sell, but for me it's not right now. Mind you I haven't looked at the chart this year.
Bill M
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I've held NAB since around 1994, paid around $11 for them. Probably my most longest and heavily held stock. Usually I have at least 2 parcels of them. One parcel I sold out of at around $31.50 just recently. Looking to buy back in again at lower prices and will wait for as long as it takes for the price to come down a bit more. One of the best dividend payers I have ever had and the shares have paid for themselves probably 3 times over that long period of holding. It will be staying in my portfolio and I will be adding at lower prices.
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New Issue – NAB Subordinated Notes 2 (NABPE)
· Offer by National Australia Bank (“NAB”) of NAB Subordinated Notes 2 (“Notes”) – is expected to be quoted on ASX under code “NABPE”.
§ Bookbuild Margin Range: 2.20% -2.30%
§ Interest: Floating rate, cumulative Interest payments to be based on a margin range of 2.20% -2.30% per annum above the 90 day BBSW, to be set on 15 February 2017). First payment expected to be 3.97% – 4.07% based on current 90 day BBSW rate of 1.77%.
§ Term: NAB Subordinated Notes 2 will mature on the Maturity date 20 September 2028 (11.6 years). NAB may, with the prior written approval of APRA, elect to redeem all or some of the NAB for the face value ($100) in cash on 20 September 2023 (6.6 years) and on any Interest Payment Date thereafter up to but excluding the Maturity Date.
Key security features of the Offer and NAB Subordinated Notes 2:
· Issuer – National Australia Bank Limited
· Offer size - $750 million, with the ability to raise more or less.
· Type of Security – Subordinated Unsecured Note, directly issued by NAB which are not guaranteed by any person. NAB Subordinated Notes 2 are not deposit liabilities of NAB and are not Protected Accounts of the Banking Act or any other accounts with NAB.
· Purpose and Regulatory Classification – NAB is issuing NAB Subordinated notes 2 to raise Tier 2 Capital for the purposes of the Regulatory Capital requirements that apply to NAB and APRA has confirmed that the NAB Subordinated Notes 2 will qualify as Tier 2 Capital.
· Use of Proceeds – The net proceeds of the Offer will be used to refinance NSN and for general corporate purposes.
· Face Value – A$100 per NAB Subordinated Unsecured Note 2.
· Term – NAB Subordinated Notes 2 will mature on the Maturity date 20 September 2028, unless previously redeemed or purchased by NAB or a related Entity and cancelled, or Converted or Written Off.
· Interest – A NAB subordinated Note 2 entitles the holder to receive floating rate, cumulative Interest payable quarterly in arrears in cash until it is Redeemed Converted or Written off.
o The Interest is equal to the sum of the bank Bill rate plus the Margin
o The margin is expected to be determined under the Bookbuild expected to be in the range 2.20% to 2.30%. The Margin will not change for the term of the NAB Subordinated Notes 2.
o The interest payment dates are each of 20 March, 20 June, 20 September and 20 December.
o The first Interest Payment is Expected to be paid on 20 June 2017
o Interest paid on NAB will not be franked.
o Interest is not discretionary or deferrable. NAB must pay Interest to Holders unless the Solvency Condition is not satisfied. If the Solvency Condition is not satisfied on a particular payment date, Interest will not be paid on that date.
· Optional Redemption – NAB may, with the prior written approval of APRA, elect to Redeem all or some of the NAB for the face value ($100) in cash on 20 September 2023 and on any Interest Payment Date thereafter up to but excluding the Maturity Date.
o Holders should not expect that APRA’s approval will be given in these circumstances
· Redemption in other Circumstances – NAB may with the prior written approval of APRA, elect to Redeem all or some of the NAB Subordinated Notes 2, following the occurrence of a Tax Event or Regulatory Event. Holders should not expect that APRA approval will be given in these circumstances.
o On Redemption in these circumstances, a Holder will receive an amount equal to
§ The Face Value of $100 plus
§ Any accrued but unpaid interest up to the Redemption date
o Other conditions apply to any redemption in these circumstances.
· Solvency Condition - NAB’s obligation to make payments in respect of the NAB Subordinated Notes 2 (including to pay Interest and repay the Face Value on maturity or when NAB are to be redeemed) is conditional on NAB being Solvent at the time of payment and immediately after making the payment
o A failure by NAB to make a payment because of a failure to satisfy the Solvency Condition is not an Event of Default. However any unpaid amounts remain a debt payable to the Holder by NAB and will be payable on the first date on which the Solvency Condition is satisfied.
· Offer by National Australia Bank (“NAB”) of NAB Subordinated Notes 2 (“Notes”) – is expected to be quoted on ASX under code “NABPE”.
§ Bookbuild Margin Range: 2.20% -2.30%
§ Interest: Floating rate, cumulative Interest payments to be based on a margin range of 2.20% -2.30% per annum above the 90 day BBSW, to be set on 15 February 2017). First payment expected to be 3.97% – 4.07% based on current 90 day BBSW rate of 1.77%.
§ Term: NAB Subordinated Notes 2 will mature on the Maturity date 20 September 2028 (11.6 years). NAB may, with the prior written approval of APRA, elect to redeem all or some of the NAB for the face value ($100) in cash on 20 September 2023 (6.6 years) and on any Interest Payment Date thereafter up to but excluding the Maturity Date.
Key security features of the Offer and NAB Subordinated Notes 2:
· Issuer – National Australia Bank Limited
· Offer size - $750 million, with the ability to raise more or less.
· Type of Security – Subordinated Unsecured Note, directly issued by NAB which are not guaranteed by any person. NAB Subordinated Notes 2 are not deposit liabilities of NAB and are not Protected Accounts of the Banking Act or any other accounts with NAB.
· Purpose and Regulatory Classification – NAB is issuing NAB Subordinated notes 2 to raise Tier 2 Capital for the purposes of the Regulatory Capital requirements that apply to NAB and APRA has confirmed that the NAB Subordinated Notes 2 will qualify as Tier 2 Capital.
· Use of Proceeds – The net proceeds of the Offer will be used to refinance NSN and for general corporate purposes.
· Face Value – A$100 per NAB Subordinated Unsecured Note 2.
· Term – NAB Subordinated Notes 2 will mature on the Maturity date 20 September 2028, unless previously redeemed or purchased by NAB or a related Entity and cancelled, or Converted or Written Off.
· Interest – A NAB subordinated Note 2 entitles the holder to receive floating rate, cumulative Interest payable quarterly in arrears in cash until it is Redeemed Converted or Written off.
o The Interest is equal to the sum of the bank Bill rate plus the Margin
o The margin is expected to be determined under the Bookbuild expected to be in the range 2.20% to 2.30%. The Margin will not change for the term of the NAB Subordinated Notes 2.
o The interest payment dates are each of 20 March, 20 June, 20 September and 20 December.
o The first Interest Payment is Expected to be paid on 20 June 2017
o Interest paid on NAB will not be franked.
o Interest is not discretionary or deferrable. NAB must pay Interest to Holders unless the Solvency Condition is not satisfied. If the Solvency Condition is not satisfied on a particular payment date, Interest will not be paid on that date.
· Optional Redemption – NAB may, with the prior written approval of APRA, elect to Redeem all or some of the NAB for the face value ($100) in cash on 20 September 2023 and on any Interest Payment Date thereafter up to but excluding the Maturity Date.
o Holders should not expect that APRA’s approval will be given in these circumstances
· Redemption in other Circumstances – NAB may with the prior written approval of APRA, elect to Redeem all or some of the NAB Subordinated Notes 2, following the occurrence of a Tax Event or Regulatory Event. Holders should not expect that APRA approval will be given in these circumstances.
o On Redemption in these circumstances, a Holder will receive an amount equal to
§ The Face Value of $100 plus
§ Any accrued but unpaid interest up to the Redemption date
o Other conditions apply to any redemption in these circumstances.
· Solvency Condition - NAB’s obligation to make payments in respect of the NAB Subordinated Notes 2 (including to pay Interest and repay the Face Value on maturity or when NAB are to be redeemed) is conditional on NAB being Solvent at the time of payment and immediately after making the payment
o A failure by NAB to make a payment because of a failure to satisfy the Solvency Condition is not an Event of Default. However any unpaid amounts remain a debt payable to the Holder by NAB and will be payable on the first date on which the Solvency Condition is satisfied.
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NAB and all Aussie banks been inflated on this Trump Pump , bit of a blow off , upside limited first half 2017 IMO ...
Correct and with thanks to Quant and NAB:
NAB states that the proceeds (at least $750m) will be used to repay part of the $1.17m issue to NAB Subordinated Note I (ASX code: NABHB) holders, as well as for general purposes. NABHB mature in June 2017 and currently pay a margin of 2.75% which wasn't a bad margin back when the 90 day Bank Bill swap rate was 3.4933% (2012) as opposed to today's 1.5%.
NABPE is targeted at these NABHA NSN holders and is priced accordingly. In todays market as Tier 2 capital under BASL III, NABPE is "rather low" at a predicted margin of 2.2-2.3% and is well below any other hybrid/note (ignoring perpetuals) in the market other than BENHB which has a margin of 1%, matures in 2054 and currently trades at $68.89.
At an offered annual rate paid quarterly of 3.7-3.8% (margin of 2.2-2.3% plus 90 day BBSW of 1.5%) low is correct even with the potential for some cumulative interest.
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BOQ in W.A from my experience, isn't working well, I won't be using them again for a term deposit.
Sorry abt that,...
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Hey, just my opinion, I tried BOQ, used them, wasn't happy with them.
It wasn't personal, but if any one else had the same experience, I would think they would draw the same conclusion.
I went into the branch got a quote on the interest rate I would get, transferred a large sum of money over, when the info came through it was 2.8% rather than the quoted 3%.
I lived with it, but wouldn't recommend them.
I do find it interesting you're sorry about it, are you fishing.lol
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BOQ thread the place to ask that imo
I'd be furious too,.. no. I'm not,... just wanting to know how do you guys think abt the coming BOQ results,... sorry, wrong thread too,... I hold NAB too, hence posted into here accidentally,...
Right,.. moving this over to the BOQ house now,...
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