useful comments: thanks Graham yes, agree. I hold about 15 hybrids and have not bought equities for quite some time.
It is about asset allocation and to some extent the hybrids reduce the need to value the underlying equity. So long as you have a view that the underlying equity will survive, the hybrid does indeed provide a great yield (FCLPA=24% per annum) and a capital gain one day in the future. More important is the view which i hope you would agree with that debt has to rally first before equity does.
Do you own AAZPB? look at the return. With CapitaLand behind them, 20% yield and based on certain assumptions of redemption or conversion timing, 100% PER ANNUM return looks great don't you think?
FCL Price at posting:
42.0¢ Sentiment: LT Buy Disclosure: Held
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