Warford,I dont think ALZ will be redeeming AAZPB any time soon...

Warford,
I dont think ALZ will be redeeming AAZPB any time soon as the margin rates of 4.85% is cheap in comparison to the recently closed AMP notes which offer:

A Margin of 4.7500%

A reset date on 15/5/2014 where the margin will reset to 150% of 4.75%
Even if the margin becomes expensive, AMP cannot redeem until on or after the reset date. Thus notes are likely to trade higher than face value if the margin becomes expensive. (AAZPB can be redeemed IF ALZ can find cheaper funding)

Maturity date of 1/04/2019 (AAZPB is perpetual)

AMP notes have Standard & Poor A- rating and Moody A3 rating (I am guessing AAZP is unrated. However we should not forget NAB had to write off AA notes in the recent crisis, so these ratings may not be worth anything??)