Your thoughts on Macquarie Hybrid (MBLPD)
Your thoughts on mblpd?
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Answer
Hi Carolyn,
We view the MBLPD as slightly higher risk than the major bank Hybrids, but it’s a solid security, offering a yield to first call of 6.74% (based on $99.01) with 5.5 years to run. By means of comparison, the Westpac (WBCPJ) has 4 years to run and is on 6.62%. The question then becomes, is a ~0.12% differential enough for the added risk. We’d prefer the WBC security on that basis, while the MQGPF has a yield to call of 7.09% for an extra year of duration (v the MBLPD), which is relatively more attractive if looking specifically at MQG notes in our view.
