The author has been described by News Ltd as an "iconoclast", "Svengali", a pollie's "economist muse", and "pungently accurate". Fairfax says he is a "Renaissance man" and "one of Australia’s most respected analysts." Stephen Koukoulas concludes that he is "85% right", and "would make a great Opposition leader." Terry McCrann claims the author thinks "‘nuance’ is a trendy village in the south of France", but can be "scintillating" when he thinks "clearly". The ACTU reckons he’s "an enigma wrapped in a Bloomberg terminal, wrapped in some apparently well-honed abs."

Friday, March 30, 2012

Bell Potter: take advantage of listed vs. unlisted debt pricing anomalies...

Completely agree with this analysis from Bells...

Anomalies: ANZ Senior FRN debt AA- 113.0 9-May-16 138.5 yet ANZHA, the sub debt 10NC5 is trading at +290bps. The OTC margin between senior and sub-debt of the ANZ is +100/110bps, not the +150bps traded in the listed space.

Recommendation: Clients who are seeking floating rate debt issues at historically high margins should consider adding to their holdings of ANZHA at +290 or 7.32% and Colonial at +343 or 7.86%. The market will settle and it is only a matter of time that instos will look at the value offered through the listed space
at 9:59 AM