Salomon Smith Barney (SSB) has released ten new high yield instalment securities to meet rising demand for warrant-type products.
Salomon Smith Barney (SSB) has released ten new high yield instalment securities to meet rising demand for warrant-type products.
The new issue includes regional companies like TAB in New South Wales and Bank of Western Australia, as well as three major banks and com-panies such as Foster’s, Pacific Dunlop, Woodside and Telstra.
“These are the stocks that our research tells us have strong retail interest,” says SSB manager structured equity sales Paul De Lange.
Their yields range from 10 per cent (Telstra) to 23.7 per cent (Bo-ral). They allow investors to enjoy the benefits of owning a share, like fully franked dividends. Yet, investors only pay part of the cost upfront and the rest in two years time. And, the final payment is not obligatory.
SSB brought the product’s introduction forward to enable clients to include them in their end of year tax planning strategies. A product ruling from the Australian Tax Office, however, is still to be received.
