A bad month for hybrid investors

Last week Bank of Queensland (BOQ) dispelled the notion that banks' reputations would outweigh their economic interests when it came to redeeming hybrids (see 'Banks caught bluffing'). On 2 November, Standard & Poors (S&P) announced they were reviewing their equity classification of corporate hybrids issued by the likes of Origin, Tabcorp and AGL. It's been a bad month for hybrid investors. The BOQ incident highlighted just how silly (and risky) these hybrid instruments can be. The BOQ PEPs share price shot up to $98 and then plummeted to $87, in the space of 48 hours, as investors took turns to...

Last week Bank of Queensland (BOQ) dispelled the notion that banks' reputations would outweigh their economic interests when it came to redeeming hybrids (see 'Banks caught bluffing'). On 2 November, Standard & Poors (S&P) announced they were reviewing their equity classification of corporate hybrids issued by the likes of Origin, Tabcorp and AGL. It's been a bad month for hybrid investors.

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