CBAPG
I hold CBAPG but I don't really understand hybrids. What happens at the call date? Thanks for your insight
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Answer
Hi Gail,
Generally, CBA will call the security at its first call date and pay back the $100 face value of the security (plus accrued distributions) or offer a new security to roll funds into, with the decision being the holders of the Hybrid. APRA has recently released a draft proposal to essentially ban hybrids from being held by retail investors. If that gets up, all hybrids will be called (paid back) at their first call date. In extreme situations, the call date may be deferred, but only when the hybrid issuer (CBA in this case) is under financial duress, which is not the case, and has never been the case since the current structure of hybrids have been in existence.
The most likely scenario for CBAPG holders (including MM) is we will be paid back in April 2025.
