Bank Hybrids FAQs
Frequently Asked Questions
Bank Hybrids may not always provide a regular income stream.
Bank Hybrids pay distributions at the absolute discretion of the bank and are subject to the Distribution Payment Conditions. If a distribution is not paid, the missed payment will not be made up (often referred to as being Non-Cumulative). As distribution payments are based on BBSW, distribution payments are likely to vary over the term of the Bank Hybrid.
For an example of how to calculate distributions on Bank Hybrids, see Case Study 1.