From a risk/reward perspective, I believe MXUPA is the best...

From a risk/reward perspective, I believe MXUPA is the best hybrid.

- Multiplex owned by Brookfield Asset Management (strong parent, who has put in pref shares which rank behind MXUPA)
- after write downs, net equity around $4 billion

My calculations as follows:

Assume, BBSW 3.5% and interest payments met, rate of return for a range of scenarios in terms of redemption (when credit crisis is iver);

redemption on 15 Apr 2010 gives rate of return of 249% PER ANNUM

redemption on 15 Apr 2011 gives rate of return of 136% PER ANNUM

redemption on 15 Apr 2012 gives rate of return of 98% PER ANNUM

redemption of 15 Apr 2013 gives rate of return of 79% PER ANNUM

if PERPETUAL, rate of return is 25% PER ANNUM



Comments?