Bank shares versus hybrids

Key Points Bank share prices have surged since June, with yields much lower Margins on bank hybrids have improved As a result, a partial switch from ordinary shares to hybrids may be in order The background Initially at least, hybrid offers like grossed up). Critically, they’re now comparable with those offered on the convertible hybrids, each of which is currently trading (or is being offered) on a grossed up yield of 7-8%pa. The convertible hybrids still feature high yields, downside risk and no ordinary share upside (earlier articles contain the full analysis) but right now, bank ordinary shares offer...

Initially at least, hybrid offers like grossed up). Critically, they’re now comparable with those offered on the convertible hybrids, each of which is currently trading (or is being offered) on a grossed up yield of 7-8%pa.

The convertible hybrids still feature high yields, downside risk and no ordinary share upside (earlier articles contain the full analysis) but right now, bank ordinary shares offer lower yields and much less upside than they did a few months ago.

{{content.question}}

Mastercard

{{ 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

Email is required.
Email must be a valid email.
Password is required.
First name is required.
Last name is required.
Mobile phone number is required.
You must accept the terms and conditions.

OR

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

You have entered an incorrect email or password

Email is required.
Email must be a valid email.
Password is required.

Please untick this box when using a public or shared device


OR

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

Mastercard

Updating information

Please wait ...

Trial

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

Please click on the ACTIVATE button to finalise your membership

Mastercard

The email address you entered is registered with InvestSMART.

Login or to reset your password, select Forgotten password

You have entered an incorrect email or password

Email is required.
Email must be a valid email.
Password is required.

Please untick this box when using a public or shared device


OR

Related Articles