Can you buy and sell them or are you stuck with them til 2028?

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slimdeucer

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15/05/20

05:20

Post #: 44630947
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Originally posted by SaltyInvestor: ↑

Sure Danvestor. Basically Macquarie is going to raise $400 million of additional capital through a hybrid, a security which contains features of both an equity and a bond. The banks do this is in order to meet Tier 1 capital requirements required by APRA.I'd encourage you to google and do your research on hybrids but from my mere amateur understanding they are:
Issued at $100 per note
Far less volatile than the underlying security, so they don't fall or gain much
They pay a distribution that comprises a Margin above a Reference Rate; in this case 4.70% above the BBSW, paid quarterly
For Macquarie's BCN 2, distributions are discretionary and non-cumulative, and are expected to be partially franked. The notes may be redeemed on December 2025, June 2026 or December 2026, and they have a mandatory conversion date of December 2028.
If the issuer gets into trouble, their hybrids are converted into equity to strengthen buffers and if the issuer goes broke, hybrids are prioritised above equity holders in terms of repayment
Basically think of it as investing in a bond. It's not likely to go down or up much as it's less risky, so you'll have less downside and less to gain - but you'll get some nice dividends along the way.
DYOR and read the prospectus, but I attend to apply.
Also: https://www.bankingday.com/macquarie-re-prices-hybrid

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Can you buy and sell them or are you stuck with them til 2028?
MQG Price at posting: $103.16 Sentiment: Hold Disclosure: Held
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(20min delay)
Last $218.21		Change -4.070(1.83%)		Mkt cap ! $83.16B

Open	High	Low	Value	Volume
$221.50	$221.68	$218.21	$127.5M	582.3K

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No.	Vol.	Price($)
3	804	$218.18

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Price($)	Vol.	No.
$218.35	55	1

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No.	Vol.	Price($)
3	804	218.180
1	120	218.130
1	20	218.120
2	1298	218.020
2	2013	218.010

Price($)	Vol.	No.
218.350	55	1
218.800	221	1
218.920	1288	1
219.000	100	1
219.040	103	1

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