neiln, page-19

I agree Watford, the mood of the hybrid market is not to make a cash payout.

I believe your short the heads strategy does protect the major investment.

Congrats to you and 2ic for the way you set this out. It made it clearer for me.

2ic's comments about TIM refinancing though are right on the money.

That's why I like SEVPC in the hybrids category. The returns aren't as high but Seven doesn't have any debt and has $1.0bn in investments and $1.4bn net cash.

As a guide I got in at $92 in my super fund and at this price I get a 9.627% after tax return with a potential capital gain of 8.7% in 18 months time if they redeem which is likely given their cash position or a cap profit of 11.4% if they are exchanged for ord shares with the 2.5% discount applying.

I figure this will beat any cash return and they have a preference over ordinary shares.