You're right - the CBA is buying back Tier 1 Capital paying a 4.75% (there about) dividend and issuing hybrids paying bank bill +3% in a rising interest rate environment - current projected coupon on PERLS XVI is 6.9%
On the Buy Back the bank has expended $2,456,458,493 shareholders funds to acquire 24,701,030 shares at an average price of 99.45 which means as at todays close they are looking at a mark-to-market loss of $62,740,616....
The Board increased the buy back authorisation from $2 billion to $3 billion late last year (if i recall) - which means they have roughly $540 million left to spend ... unless they increase again but I doubt is as others will be asking the same question(s) you are.... "does this make sense."
It makes sense if your compensation is linked to the share price... which for all the Board Members and most of the senior management ...... it is...
$540 million is not going to be enough to hold back the wave of selling that is going to hit the markets between now and September - I expect to see CBA back down to the $88 - $92 range we saw in June and Oct 2022 ... just a view
Hope this helps MP
You're right - the CBA is buying back Tier 1 Capital paying a...
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Last
$125.31 |
Change
-0.170(0.14%) |
Mkt cap ! $209.7B | |||
| Open | High | Low | Value | Volume |
| $125.36 | $125.60 | $124.85 | $198.0M | 1.597M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 1 | 112 | $125.29 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $125.32 | 2635 | 2 |
View Market Depth
| Last trade - 16.10pm 14/06/2024 (20 minute delay) ? |
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Last
$125.18 |
Change
-0.170 ( 0.08 %) |
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| Open | High | Low | Volume | ||
| $125.37 | $125.60 | $124.85 | 98383 | ||
| Last updated 15.59pm 14/06/2024 ? | |||||
| CBA (ASX) Chart |