Bank hybrids: A reality check

The risks and price moves of bank hybrids have received considerable attention. We take a look at some common claims.

Summary: Considerable press has recently been given to the suitability, risks and price movements of bank hybrids, but this is worth putting into context. Although capital notes contain trigger conditions, potential capital losses would only be a factor in extreme circumstances. Recent price falls can be explained by market indigestion and rotation into cheaper equities after the sell-off. And shares have a higher dividend now, but this is not always the case.

Key take-out: Investors who understand the importance of a diversified portfolio should not be fazed by recent press around hybrids.

Key beneficiaries: General investors. Category: Hybrid securities.



{{ twilioFailed ? 'SMS Code Failed to Send…' : 'An SMS verification code has been sent ...' }}

Hi {{ user.FirstName }}

Looks like you have already taken a free trial

Please enter your payment details

We have sent you a code via SMS to {{user.DayPhone}}

please enter this code below to complete your SMS verification

We cannot send you a code via SMS to {{user.DayPhone}}

If you didn't receive SMS code please

SMS code cannot be sent due to: {{ twilioStatus }}

Please select one of the options below:

Looks you are already a member. Please enter your password to proceed

Please untick this box when using a public or shared device

Verify your mobile number to proceed...

Please check your mobile number below and press the Send Verification Code button. This will be used to complete your verification in the next step.

Please sign up for full access


Updating information

Please wait ...


{{ productPrice }} / day
( GST included )
Price $0
GST $0
Discount -{{productDiscount}}
TOTAL {{productPrice}}
  • Mastercard
  • Visa

Please click on the ACTIVATE button to finalise your membership


The email address you entered is registered with InvestSMART.

Please login or select "Don't know password"

Please untick this box when using a public or shared device

Register as a new member

(using a different email)

Related Articles