In September this year, the prudential regulator made a bombshell announcement. After a year-long review, the surprise decision was made to phase out Australian bank hybrids.
These securities, which are part debt and part equity, have been a mainstay of many wealth portfolios for well over two decades because they’ve paid relatively high and reliable franked distributions, of about 6 to 8 per cent.
Jonathan ShapiroSenior reporterJonathan Shapiro writes about banking and finance, specialising in hedge funds, corporate debt, private equity and investment banking. He is based in Sydney. Connect with Jonathan on Twitter. Email Jonathan at jonathan.shapiro@afr.com
