fxjpb, page-5

Reasons as follows:
(1) Most conservative retail investors being retirees chose property trusts and hybrids in preference to corporate equities. These investors bought through both fund managers and as direct buyers. Property trusts got hammered worse than equities and this fact combined with the fact that the Government guarantee of bank deposits caused a lot of concern (as not being applied to funds) that retirees started redeeming
(2) Believe it or not, many investors think these hybrids are complex instruments. I have a friend who knows the ins and outs of technicals, fibonacci, etc etc but cannot understand the key terms of hybrids. Even some financial planners struggle.


TTXPA is the best hybrid in my opinion (outside the banks which have fairly ordinary yields) because it is one of the few hybrids that are callable.

I anaylse the returns from two perspectives:
(a) yield to maturity but assuming five uears from now as a worst case
(b) even worse than above, i stress test assuming I hold the note forever (running yield);

if you are happy with (b), they are a "buy". AAZPB, MXUPA, GNSPA all have huge running yields. There is a risk of course the compnay gets into strife and they freeze distributions or worse they go out of business but if you have 12 hybrids all yielding 20 to 30% per annum, you can afford for a couple of blow ups (BNBG being mine so far)