- Over the past week, the June Hybrid Dividends were paid to holders. A total of ~$350 million of dividends has been paid so far in June.
- Whilst we haven’t seen significant buying into Hybrids over the last week, we do expect over the next few weeks that some of this excess cash will find its way back into the Hybrid market.
- With June 30 approaching, this buying may start to gain momentum into the new financial year.
- There is a lack of any upcoming major bank Hybrid Rolls in the second half of the year and spreads have widened recently (prices lower), meaning hybrids are now looking relatively more attractive, and for those looking to buy, now seems a good time.
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Major Bank Hybrids – Average Margin over swap rate – Source Shaw & Partners
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Major Bank Hybrids – Average Margin over swap rate – Source Shaw & Partners
