KEY POINTS:
What is it called and what sort of savings product is it?
ANZ National perpetual callable subordinated bonds.
Which company is behind it?
ANZ National Bank is the largest full-service bank in New Zealand with more than two million customers, 300 branches and around 33.6 per cent of the total assets held by registered banks in New Zealand.
Who is the target market?
People wanting a debt product with a good yield and investment-grade credit rating.
What return does it offer?
The rate has yet to be set, but
it's looking like it will be around the 10 per cent mark. The rate will be 200 basis points above the five-year swap rate on April 17.
When was it launched?
March 7.
What other products is it like or is it competing with?
On the surface, it is up against the BNZ offer profiled last week, but there are some key differences between the two.
ANZ National is a straight bond, while BNZ has structured its
offer as a portfolio investment entity (PIE) for tax purposes.
Also, the ANZ National offer is directly issued by the bank, while BNZ's is a special purpose company. The third key difference is that ANZ National's offer is higher ranking, in terms of security, than BNZ's offer.
Is it long term, short term or medium term?
This is a long-term investment as it has no maturity date. However, ANZ National has set call dates. The first is in 2013 and the second in 2018.
What is the unique selling point?
The selling points of this offer are its Standard and Poor's rating of A+, along with the interest rate. It also has appeal as it is a transparent offering.
How strong a stomach do you need for it?
Mild.
What's the hitch?
There aren't too many hitches with this investment other than the normal ones that go with bonds.
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