Recent new issues by NAB, Macquarie, and Ampol might have you thinking about adding capital notes, sometimes called ‘hybrids’ to your portfolio. In this article, we discuss the advantages and disadvantages to help you determine if they might be right for you.
A capital note is a hybrid product and...
The Australian bank capital note market has long been favored by income investors and is worth around $30 billion. Recent issues mean it's worth examining capital notes, their features and why you would consider investing.
Both Westpac and Macquarie Bank have recently been in the market with a capital notes...
This month AMP issued a new hybrid. AMP planned to raise $200m via an issue of Capital Notes 2 (ASX code: AMPPB) securities, which it exceeded, raising $275m. The securities are perpetual, convertible, subordinated, non cumulative, unsecured notes and the proceeds used to fund “one or more APRA-regulated entities...
What is a bond?
Companies often need to raise external funds to grow. There are two ways they can do this:
Raise equity by issuing shares
Take on debt by borrowing money
Practically all companies use banks to borrow, but companies can also by-pass the banks and borrow from investors by...
