Banks caught bluffing

Key Points The 2007 vintage BOQ hybrid will not be redeemed as originally anticipated Investors are instead being arm twisted into a new convertible hybrid (BOQ CPS) BOQ CPS is more likely than earlier hybrids to list at a discount Samuel Goldwyn once said, ‘an oral contract is not worth the paper it’s written on’. He might have added, ‘particularly when it’s your stockbroker writing the contract’. Investors in Bank of Queensland (BOQ) Perpetual Exchangeable Preference shares (PEPs) have just learned this lesson the hard way. The broker may have said they’ll be redeemed at the first opportunity but...

Samuel Goldwyn once said, ‘an oral contract is not worth the paper it’s written on’. He might have added, ‘particularly when it’s your stockbroker writing the contract’.

Investors in Bank of Queensland (BOQ) Perpetual Exchangeable Preference shares (PEPs) have just learned this lesson the hard way. The broker may have said they’ll be redeemed at the first opportunity but it won’t be happening.

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