ANZ Capital notes 4 - the joke continues?

I'm amazed banks continue to push out these type of unsecured warrants.

Does ANZ really think a 4.5% interest rate (BBSW+4.75%)*(1-tax rate) for the current BBSW of 1.73% (3 month)) is reasonable reward for the risk associated with the warrant?  A 1.5% premium to secured, government guaranteed term deposits attracting 3% is nowhere sufficient enough for that risk given:

• The warrant is unsecured
• The warrant is junior to just about every other debt ANZ may have except ordinary shares
• Can be converted at any time to ordinary ANZ shares at ANZ's whim
• Any conversion is subject to an undisclosed and arbitrary maximum no. of shares
• ANZ can arbitrarily decide not to pay the coupon, solely at their discretion, without affecting normal dividends

The last lot of capital notes issued by a bank (WBCPF) could be picked up for as low as $94 not long after floating and have only once traded at or above their face value of $100.  You can still pick them up below face value today.  This is also true of NABPB and CBAPD, amongst others, although some of the older issues with a higher interest rate now command a premium (eg, CBAPE).

Senior company bonds (ie, ranking before most creditors), commonly with a BBB credit rating, can often pay a coupon rate higher than this, are secured, and must be redeemed by cash.  OK, these bank warrants come fully franked, but tax is never a good driver for investment decisions.

The Australian banks taking ozzie investors for a ride continues?