|
|
 |
|
Viewing report
|
|
|
|
ARCHIVE | Criteria | Corporates | General: Australia and New Zealand Hybrid Securities--Equity or Camouflaged Debt? May 01
Standard & Poors, May 2001
Abstract
The recent proliferation of hybrid securities in Australia and New Zealand is further evidence of the growing sophistication in the region's capital markets. For investors, hybrid securities provide an opportunity to diversify their investment portfolios and to achieve high returns. For issuers, these securities provide an opportunity to diversify their funding sources, to manage their cost of capital and funding structures (as they are a cheaper form of capital than common equity), and to improve shareholder returns. Three of the most popular hybrid securities issued in the Australian and New Zealand markets-reset convertible preference shares, income securities, and capital notes-typically reflect the challenge that companies face in choosing securities that have equity-like features to appropriately manage their capital structures, and...
Companies mentioned in this report are: Commonwealth Bank of Australia,St.George Bank Ltd.,QBE Insurance Ltd.,QBE Insurance (Australia) Ltd.
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research Type: Commentary
Criteria articles describe the thought process and methodology Standard & Poor's analysts use in determining ratings. These commentary pieces discuss both the quantitative (economic and financial) and qualitative (business analysis and caliber of management) aspects of the analysis, as well as legal issues.
|
|
|
|
