Question 1: I watched your masterclass on fixed interest with great interest, particularly the segment on hybrids. As I’m a security holder with Suncorp, I’ve received a prospectus for their Suncorp Capital Notes 3. Are these in any way similar to the Commonwealth PERLS XII hybrid?
Answer (by Paul Rickard): Yes, almost identical. Same fixed distribution margin of 3.0% over the 90 day bank bill. Term (to both call date and exchange date) is approximately 1 year shorter. The securityholder offer closes on 12 December.
Question 2: Is it a good idea to invest more in all the major banks at this share price? Or do I need to wait to get a clearer picture on banks, fines and profits.