NAB dressing up capital ratio 05 October 2009 5:43PM Philip Bayley In what appears to be a clear exercise in year-end window dressing, National Australia Bank sold A$600 million of hybrid, tier one securities to Deutsche Bank London on September 30. The highly structured perpetual securities will pay a coupon of 200 basis points over bank bills. NAB may convert these hybrids to ordinary equity as early as March next year and may even redeem them, subject to APRA approval, as soon as the end of this year. NAB has undertaken a number of these transactions with Deutsche Bank in the past.ANZ redeemed a similar issue from Deutsche Bank not long after its mammoth equity-raising from its retail investors, earlier in the year.