As a holder of SVWPA and MXUPA which are perpetual floating rate hybrids I am thankful I didn't buy at face value ($100) but rather at a more attractive approx $75 in both cases which increases the yield by about 33% - currently around 7-8% based on purchase price. I see them as an analog of a term deposit but at a much better interest rate albeit with more risk but also a potential for a decent capital gain if redeemed. The rate floats with the cash rate so is largely immune from the issue of being caught in a rising interest rate cycle. Because of the known redemption price but undefined redemption date I would never pay more than the face value as it is an almost guaranteed capital loss.
