ASX uses a standardised security naming convention and description for debt and hybrid securities. The descriptors enable you to also search, classify or group together debt and hybrid securities of similar features and attributes.
Below are descriptors for each security category - updated as at 30 September 2020.
|Master list of security descriptions|
|Treasury Indexed Bonds|
|Floating Rate Notes|
|Transformable Pref Shares and Notes|
|Converting Preference Shares|
What are the descriptions?
Each debt and hybrid security has a unique code and three different security descriptions:
- Long form description - a maximum of 50 characters;
- Abbreviated description - a maximum of 20 characters; and
- Short description - a maximum of 9 characters.
You will find one or more of these descriptions on your CHESS Statement, trading screen, broker advice, financial newspaper report such as in the Australian Financial Review and other places where ASX debt and hybrid securities are referred to.
What do the descriptions mean?
To understand what each description or letter means, use the Guide to the naming conventions and security descriptions for ASX quoted debt and hybrid securities. The Guide also contains a glossary of terms.
Description example - ANZPE
The security description provides the basic information about a security's features. For example, ANZPE has the following 'Long form description':
CAP NOTE 6-BBSW+3.25% PERP NON-CUM RED T-03-24
Using the Guide, you can determine what the security description means.
|CAP NOTE||A Capital Note, meaning that the issuer (or a third party such as a prudential regulator like APRA) has a right to extinguish the security under certain circumstances.|
|6-BBSW+3.25%||The security pays a semi-annual floating distribution based on the 6 month BBSW rate +3.25%.|
|PERP||The security has no maturity date (e.g. it is perpetual).|
|NON-CUM||The distributions are non-cumulative.|
|RED||The security is redeemable.|
|T-03-24||The security has a trigger date for possible conversion in March 2024.|
Note: Due to character constraints, some features may not be able to be included in a security's description. For example, Capital Notes (such as ANZPE above) which by their nature are subordinated securities, do not include the description 'SUB'.
Always review the issuer's prospectus, PDS or term sheet and consult your adviser to ensure you are familiar with all of a security's features.