ANZ Perpetual Preference Shares

[Lego_Man]

As I understand it, back in the day the government guarantee as applied to South Canterbury Finance covered the plain vanilla Bonds but not the Perpetual Preference Shares.

This may set a precedent in the minds of those designing the current arrangement.

Quite a different scenario. Under the NZ Regs, the AT1 can only be touched if the bank has been effectively shuttered by the regulators. Quite unlikely in the case of our Big 4 banks which are much better regulated now, and i assume would benefit from unlimited liquidity support from the RBNZ in case of stress, as they have done in the not so distant past.

Bank sub debt and preferred stock are great investments in NZ. A lot of the positive economics of banks have been shifted from equity holders to bond holders with the current capital requirements and implied lower leverage.

[Nor]

ANBHC failing to appreciate as I would have expected. I suppose this means ANZ is likely to redeem them now rates are going down.

[Nor]

But not before July 2028.

[Grimy]

They are usually redeemed at the first reset date.
Kiwi Bank have one about to go to market. Another chance to lock in a good rate for 5.5 years (I think that's the first reset).

[Nor]

Cen090 is a shade under par.

[Newman]

They are usually redeemed at the first reset date.
Kiwi Bank have one about to go to market. Another chance to lock in a good rate for 5.5 years (I think that's the first reset).

The investment statement is available from:
https://www.chrislee.co.nz/uploads//...ents/KWBHB.pdf
The margin over 5-yr SWAP is to be determined.

Any comments on this versus similar products from ANZ and BNZ recently?

[Grimy]

I don't see it as being any different to the other banks PPS, not that I've looked at the investment statement as I'm a bit low on investment cash at present.
If I needed any more of this type of investment I'd be in, but my spare cash is being saved to exercise the BRM warrants.....

[Nor]

Well, with recent issue cen090 under water I won't be rushing in.