Where do I start with Hybrids?

Hi John,

Thanks for the positive feed, much appreciated as you nailed exactly what we are working to achieve at MM.

Picking up a few of your points: Major bank Hybrids are all floating, and they can be purchased on market via the ASX. Investors can only buy new issues if they are sophisticated (708 certificate) or receiving personal advice via a syndicate broker – a disappointing change in the regime that happened a year or so ago. We like major bank hybrids with the available securities in the screen shot below.  All the major banks are solid and it comes down to picking some exposure that suits you.  As we provide general as opposed to personal advice, this is where we stop, however all the information to make an informed decision is below, noting that yield to first call date also includes and capital gain or loss relative to the $100 face value, and the tears to first call date will tell you duration.

There is a Betashares hybrid ETF (HBRD) that is very popular, however they do change 0.55% pa plus a performance fee which is rich in our view, although performance since inception (3.38%) has not been great so I doubt much in performance fee will have been paid.  It’s run by Chris Joye.

Alternatively, the Market Matters Active Income Portfolio is a potential first step, its goal is to produce income utilising equities, ETFs and listed Income Securities such as Hybrids. The portfolio is available for investment via Market Matters Invest Here where the minimum investment is $10k.

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Major Bank Hybrids – Source Shaw & Partners

LAST UPDATED 22/07/2023 08:01

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Major Bank Hybrids – Source Shaw & Partners

LAST UPDATED 22/07/2023 08:01