Hybrid expert Michael Saba joins host Damian Pretty on the Morning mail today.
Mike discusses activity in global fixed income markets and provides an Australian context. In recent months we have seen a huge global move towards investment in yield based products. In the US demand has been large across the spectrum of bond like securities, even to high yield bonds, where issuance has been at record levels.
In Australia we have seen a similar slant, with the equity market weak and bonds demand strong. The Hybrid market has returned 4.83% year to date (pre franking). Currently we favour the Orica and Suncorp hybrids. Yesterday Ramsey indicated they are stepping up their hybrid. Base on yesterday’s close the running yield after step up on RHCPA was 10.25%.
