Active Income Portfolio – Amendment
We are adding the Suncorp Hybrid (SUNPI) to the Income Portfolio. It has a running yield of ~7%, with ~31c of accrued income in the price, and distribution of 53c coming up on the 30th of May.
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We are adding the Suncorp Hybrid (SUNPI) to the Income Portfolio. It has a running yield of ~7%, with ~31c of accrued income in the price, and distribution of 53c coming up on the 30th of May.
As many may know by now, ASX-listed bank hybrids are being phased out from 2027; however, in reality, the bank notes with call dates prior are also being redeemed, and it’s safe to say banks will not re-issue new securities again in the Hybrid market, CBA and ANZ being two recent examples.
The last hybrid we added to the portfolio was the ANZ Capital Notes 6 (ANZPI) that now has 6.6 years to run. This hybrid is paying a yield to first call of 4.36% inclusive of franking and we remain positive on this hybrid security. Yesterday, the Suncorp Capital Notes 4 (SUNPI) caught MM’s attention with a similar duration to the ANZ Hybrid, paying a yield...
MM are buying SUNPI in the Active Income Portfolio, allocating 5% around $101
MM likes the SUNPI ~$101.00
MM likes the SUNPI around $100.30
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