Intelligent Investor

Suncorp Sub Notes

By · 22 Apr 2013
By ·
22 Apr 2013 · 2 min read
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Recommendation

CAP NOTE 3-BBSW+2.85% 22-11-23 CUM RED - SUNPD
Current price
$101.05 at 16:40 (26 February 2019)

Price at review
at (22 April 2013)
All Prices are in AUD ($)

Only financial contortionists need apply for Suncorp’s latest hybrid offering, says Richard Livingston on our sister site Intelligent Investor Super Advisor.

The main trouble is with the ‘non-viability trigger event’, which forces conversion of the notes into ordinary shares if APRA decides that Suncorp isn’t viable, because there just isn’t much guidance as to how this might be enforced.

This leaves investors needing a PhD in APRA regulations and Nostradamus-like power to predict how a crisis would play out, not to mention the maths to piece it all together.

You can read the full details on the Suncorp Subordinated Notes over on Intelligent Investor Super Advisor.

IMPORTANT: Intelligent Investor is published by InvestSMART Financial Services Pty Limited AFSL 226435 (Licensee). Information is general financial product advice. You should consider your own personal objectives, financial situation and needs before making any investment decision and review the Product Disclosure Statement. InvestSMART Funds Management Limited (RE) is the responsible entity of various managed investment schemes and is a related party of the Licensee. The RE may own, buy or sell the shares suggested in this article simultaneous with, or following the release of this article. Any such transaction could affect the price of the share. All indications of performance returns are historical and cannot be relied upon as an indicator for future performance.
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