A: There is no real way to compare bank shares with bank capital notes. The former is real equity, while the latter is closer to fixed interest. With the capital notes, you will never receive more than the $100 you pay for them upfront – so there is no price upside.

I would consider any purchase of hybrid securities as part of my fixed interest/bond allocation.

As far as an offer of hybrid securities, the margin of 4.95% on the NAB Capital Notes is relatively attractive.