Macquarie Capital Notes: No outright winner but a possible each-way bet

Key Points Macquarie Group Capital Notes are a replica of the Westpac Capital Notes High margin and less of the distribution made up of franking Investors need to keep a close eye on the Macquarie Group share price Macquarie might have been slow to the hybrid party, or simply biding their time till retail investors peaked in their generosity to issuers and disregard for risk. Either way, from Macquarie’s perspective, the timing of the issue of Maximum Conversion Number is calculated based on 50% of the Macquarie Group share price on the date of issue of the notes. However,...

Macquarie might have been slow to the hybrid party, or simply biding their time till retail investors peaked in their generosity to issuers and disregard for risk. Either way, from Macquarie’s perspective, the timing of the issue of Maximum Conversion Number is calculated based on 50% of the Macquarie Group share price on the date of issue of the notes. However, this falls to 20% on an early conversion caused by the Non-viability Trigger Event. As we explained in (grossed up) dividend yields than the hybrids – Macquarie’s hybrid is being issued at a distribution rate about the same (or even a touch higher) than the Macquarie Group ordinary shares (6.8% for the hybrid vs 6-7% for the ordinaries, grossed up).

{{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