A: Although this is a hybrid security (part equity, part debt), the AMP Capital Notes are, in my opinion, more of an alternative to investing in a bond, rather than buying AMP shares.

This issue has an identical structure to the Westpac Capital Notes, PERLS VIII from the CBA, or ANZ Capital Notes.

AMP of course doesn’t have the same credit rating as CBA or Westpac, and this is going to be a fairly small issue.

However, the gross margin of 5.1%, stacks up favourably compared to the CBA PERLS VII and Westpac Capital Note Issues, which are trading at margins of around 4.3% over the 90 day bank bill.