bnbg is very attractive

I could not find any commentary in this forum on BNBG.

This subordinated exnote provides the equivalent of around 37% per annum to Nov 2010. The notes rank ahead of BNB in terms of dividend payout policy (payments on the notes must be made before equity gets paid); Clearly, they also rank ahead of BNB in security. As we saw with Multiplex, the parent company can get taken over and the notes can continue (though holders have the option to convert to equity in this case at 20 days VWAP in Oct-Nov 2010.) The lower the price of BNB in Oct 2010, the more shares you are allocated.

Of the 37% per annum equivalent return above, the bulk is in the form of a capital gain associated with selling the shares received for redemption of the notes.

CFD's can mitigate risk between VWAP pricing period and the week or so lag when your shares are allocated to your share trading account. If anybody wants spreadsheet showing my calculations as well as prospectus with all the details, please post email address.

BNBG are now on par with Timbercorp (TIMPB) and Willmott Forests (WFLPA) in terms of the most attractive return in hybrids (apart from impaired) and I think are a better buy than forestry companies. BNB may have better return when it recovers but some diversification warranted in this market, especially as security of BNBG is better ranked than BNB.

Comments aprpeciated.