new anz convertible preference shares, page-6

They are pretty simple really - best to read the prospectus.

The price of these won't move with the ANZ price. It will be fairly stable and won't move down unless the whole company is seen as being at risk of default (this happenned to the banks 12 months ago) or similar investments with a higher interest margin appear.

Most of the banks had similar issues a few years back but with lower margins than this one. Eg: CBAPB had only a 1% margin and now trades below it's issue price because there are newer issues (eg: CBAPA, WBCPB and this new ANZPA) which have margins above 3%. In a safe company the price will never move too far either way though because eventually you get them redeemed at the issue price.

Based on the other yields available at the moment these will probably trade at about $103 when they list. I intend to apply for a decent chunk.