The new-year slide of more than 10% in Australian bank shares is restoring retail investors' appetite for hybrid offerings, a once-popular investment that fell out of favour following a glut in supply. Australian hybrids rely on local retail demand because they pay a franked, or after-tax, coupon that entitles investors to tax credits when they file individual returns. The country's high-net-worth individuals and self-managed superannuation funds have been enthusiastic buyers, enabling banks to raise funds at rates far lower than in the institutional wholesale arena.
展开▼
