Summary-
The ASX-listed hybrid market remained broadly stable this week, with modest price movements and steady yields across most securities. Trading margins compressed slightly for several major bank-issued hybrids, reflecting continued investor demand for income-generating instruments amid expectations of easing cash rates in the medium term.
Key Highlights:
- Top Yielding Securities: Judo Capital’s JDOPA led the market with a running yield of 9.40%, followed by Macquarie Bank’s MBLPC at 8.43% and AMP Group’s AMPPB at 8.25%.
- Price Movements: Most hybrids recorded minimal day-to-day changes, with the largest being Westpac’s WBCPH, which rose 0.33% to close at $99.97.
- Trading Margins: Latitude’s LFSPA stood out with a trading margin of 11.43%, suggesting elevated risk pricing or investor caution.
- Major Bank Hybrids: Securities from the Big Four banks continued to offer running yields in the 6.3%–7.2% range, with trading margins generally below 3.5%, indicating relative pricing stability.
Market Context: With APRA’s planned phase-out of Additional Tier 1 (AT1) capital instruments by 2032, the hybrid market is entering a transitional phase. Investors are increasingly evaluating alternative income strategies, though hybrids remain attractive for their yield premium and franking benefits in the near term
ASX-Listed Hybrids
| COMPANY | CODE | HYBRID TYPE | MATURITY/ CALL DATE | MARGIN INCL. CREDITS | TRADING MARGIN | DAY CHANGE | DAY CLOSE | RUNNING YIELD** |
|---|---|---|---|---|---|---|---|---|
| Westpac | WBCPH | Capital Notes 5 | 22/09/2025 | 3.20% | 21.98% | 0.33% | 99.97 | 7.13% |
| AMP Group | AMPPB | Capital Notes 2 | 16/12/2025 | 4.50% | 7.48% | 0.07% | 101 | 8.25% |
| Macquarie Bank | MBLPC | Capital Notes 2 | 22/12/2025 | 4.70% | 6.98% | 0.06% | 101.049 | 8.43% |
| Challenger | CGFPC | Capital Notes 3 | 25/05/2026 | 4.60% | 5.42% | 0.03% | 102.47 | 8.30% |
| Nat Aust Bank | NABPF | Capital Notes 3 | 17/06/2026 | 4.00% | 4.36% | 0.03% | 102.099 | 7.66% |
| Suncorp | SUNPH | Capital Notes 3 | 17/06/2026 | 3.00% | 4.37% | 0.03% | 100.88 | 6.73% |
| Macquarie Group | MQGPD | Capital Notes 4 | 10/09/2026 | 4.15% | 3.98% | 0.02% | 102.5 | 7.77% |
| CBA | CBAPJ | PERLS 13 | 20/10/2026 | 2.75% | 3.60% | 0.02% | 101.05 | 6.46% |
| Latitude | LFSPA | Capital Notes | 27/10/2026 | 4.75% | 11.43% | 0.03% | 96.5 | 9.06% |
| Westpac | WBCPJ | Capital Notes 7 | 22/03/2027 | 3.40% | 4.75% | 0.02% | 102.197 | 7.18% |
| CBA | CBAPI | PERLS 12 | 20/04/2027 | 3.00% | 3.18% | 0.01% | 101.91 | 6.66% |
| Bank of Queensland | BOQPF | Capital Notes 2 | 14/05/2027 | 3.80% | 4.28% | 0.01% | 102.58 | 7.49% |
| Bendigo Bank | BENPH | Capital Notes | 15/06/2027 | 3.80% | 3.80% | 0.01% | 102.5 | 7.43% |
| Macquarie Group | MQGPE | Capital Notes 5 | 20/09/2027 | 2.90% | 3.18% | 0.01% | 101.39 | 6.57% |
| Nat Aust Bank | NABPH | Capital Notes 5 | 17/12/2027 | 3.50% | 3.23% | 0.01% | 103 | 7.09% |
| ANZ Bank | AN3PI | Capital Notes 6 | 20/03/2028 | 3.00% | 2.83% | 0.01% | 102.16 | 6.61% |
| CBA | CBAPL | PERLS 15 | 15/06/2028 | 2.85% | 3.04% | 0.01% | 101.76 | 6.51% |
| Suncorp | SUNPI | Capital Notes 4 | 17/06/2028 | 2.90% | 3.39% | 0.01% | 101.05 | 6.61% |
| Westpac | WBCPL | Capital Notes 9 | 22/09/2028 | 3.40% | 3.67% | 0.01% | 103.68 | 7.08% |
| Macquarie Bank | MBLPD | Capital Notes 3 | 7/12/2028 | 2.90% | 2.88% | 0.01% | 102.2 | 6.53% |
| Bank of Queensland | BOQPG | Capital Notes 3 | 15/12/2028 | 3.40% | 3.36% | 0.01% | 102.601 | 7.02% |
| Judo Capital | JDOPA | Capital Notes | 16/02/2029 | 6.50% | 3.89% | 0.01% | 112 | 9.40% |
| ANZ Bank | AN3PJ | Capital Notes 7 | 20/03/2029 | 2.70% | 2.82% | 0.00% | 101.39 | 6.35% |
| Challenger | CGFPD | Capital Notes 4 | 25/05/2029 | 3.60% | 3.46% | 0.01% | 103.5 | 7.19% |
| CBA | CBAPK | PERLS 14 | 15/06/2029 | 2.75% | 2.91% | 0.01% | 101.77 | 6.41% |
| IAG | IAGPE | Capital Notes 2 | 15/06/2029 | 3.50% | 3.79% | 0.01% | 103 | 7.19% |
| Macquarie Group | MQGPF | Capital Notes 6 | 12/09/2029 | 3.70% | 2.83% | 0.01% | 105.3 | 7.12% |
| Nat Aust Bank | NABPI | Capital Notes 6 | 17/09/2029 | 3.15% | 2.75% | 0.01% | 103.77 | 6.69% |
| Westpac | WBCPK | Capital Notes 8 | 21/09/2029 | 2.90% | 3.25% | 0.01% | 103.04 | 6.60% |
| ANZ Bank | AN3PK | Capital Notes 8 | 20/03/2030 | 2.75% | 2.74% | 0.00% | 101.86 | 6.37% |
| CBA | CBAPM | PERLS 16 | 17/06/2030 | 3.00% | 2.53% | 0.00% | 104.19 | 6.51% |
| Suncorp | SUNPJ | Capital Notes 5 | 17/06/2030 | 2.80% | 2.95% | 0.00% | 101.76 | 6.46% |
| Nat Aust Bank | NABPJ | Capital Notes 7 | 17/09/2030 | 2.80% | 2.69% | 0.00% | 102.801 | 6.40% |
| Bendigo Bank | BENPi | Capital Notes 2 | 13/12/2030 | 3.20% | 3.14% | 0.00% | 102.85 | 6.80% |
| Insurance Australia | IAGPF | Capital Notes 3 | 15/12/2030 | 3.20% | 3.45% | 0.00% | 102.7 | 6.89% |
| ANZ Bank | AN3PL | Capital Notes 9 | 20/03/2031 | 2.90% | 2.72% | 0.00% | 102.69 | 6.47% |
| Westpac | WBCPM | Capital Notes 10 | 22/09/2031 | 3.10% | 3.14% | 0.00% | 104.21 | 6.73% |
| Macquarie Group | MQGPG | Capital Notes 7 | 15/12/2031 | 2.65% | 2.79% | 0.00% | 101.5 | 6.31% |
| Nat Aust Bank | NABPK | Capital Notes 8 | 17/03/2032 | 2.60% | 2.41% | 0.00% | 103.26 | 6.17% |
ASX-Listed Hybrids (Non-standard)
| COMPANY | CODE | BOND TYPE | CALL DATE | ISSUE MARGIN (inc frank) | TRADING MARGIN | ?DAY | CLOSING PRICE | RUNNING YIELD |
|---|---|---|---|---|---|---|---|---|
| Nufarm | NFNG | Step Up | Perpetual | 3.90% | 5.33% | -0.02% | 87.2 | 8.98% |
| Ramsay Health Care | RHCPA | Preference Share | Perpetual | 4.85% | 4.66% | -0.01% | 105.6 | 8.31% |