There is a risk with Capital Notes as you say but they pay a higher interest rate than a TD
If notes in any of the big four were to ever become worthless I feel we would all have more important things to worry about
I hold CBAPF in my SMSF and like the franking credits
Some would argue that they can convert to shares (under certain circumstances) and so are not truly part of a balanced portfolio as they could end up being converted to shares
