4 July 2025

Summary-

Australian Bank Hybrids Update – 4 July 2025

The Australian bank hybrid market remained firm this week, with trading margins tightening across most major issues. Investor demand continues to outpace supply, especially as the 2032 APRA hybrid phase-out draws nearer.

Market highlights:

• Running yields on major bank-issued hybrids generally ranged between 6.3% and 7.7%, while select names like Judo Capital (JDOPA) and Latitude (LFSPA) offered yields above 9%.
• Trading margins compressed further for names like CBAPJ, WBCPH, and ANZPI, reflecting strong secondary market interest.
• Price stability remained a feature of the week, with limited day-on-day volatility.

Top hybrid performers included:

• Judo Capital JDOPA – Trading margin: 3.94%, Running yield: 9.37%
• Latitude LFSPA – Trading margin: 11.60%, Running yield: 9.02%
• Macquarie MBLPC – Trading margin: 7.27%, Running yield: 8.39%

Outlook: With APRA’s regulatory changes on the horizon, investors are gradually repositioning toward Tier 2 instruments, while hybrids continue to benefit from limited issuance and strong carry appeal. Non-bank hybrids like Nufarm NFNG and Ramsay RHCPA remain attractive for yield-seeking investors, though credit quality and liquidity vary.

 

• 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%	24.98%	0.81%	99.97	7.08%
  AMP Group	AMPPB	Capital Notes 2	16/12/2025	4.50%	8.04%	0.15%	101	8.20%
  Macquarie Bank	MBLPC	Capital Notes 2	22/12/2025	4.70%	7.45%	0.12%	101.049	8.38%
  Challenger	CGFPC	Capital Notes 3	25/05/2026	4.60%	5.68%	0.07%	102.47	8.24%
  Nat Aust Bank	NABPF	Capital Notes 3	17/06/2026	4.00%	4.57%	0.05%	102.099	7.61%
  Suncorp	SUNPH	Capital Notes 3	17/06/2026	3.00%	4.58%	0.05%	100.88	6.67%
  Macquarie Group	MQGPD	Capital Notes 4	10/09/2026	4.15%	4.11%	0.04%	102.5	7.72%
  CBA	CBAPJ	PERLS 13	20/10/2026	2.75%	3.74%	0.04%	101.05	6.40%
  Latitude	LFSPA	Capital Notes	27/10/2026	4.75%	11.71%	0.07%	96.5	9.01%
  Westpac	WBCPJ	Capital Notes 7	22/03/2027	3.40%	4.88%	0.03%	102.197	7.13%
  CBA	CBAPI	PERLS 12	20/04/2027	3.00%	3.28%	0.03%	101.91	6.60%
  Bank of Queensland	BOQPF	Capital Notes 2	14/05/2027	3.80%	4.40%	0.03%	102.58	7.44%
  Bendigo Bank	BENPH	Capital Notes	15/06/2027	3.80%	3.90%	0.03%	102.5	7.38%
  Macquarie Group	MQGPE	Capital Notes 5	20/09/2027	2.90%	3.25%	0.02%	101.39	6.51%
  Nat Aust Bank	NABPH	Capital Notes 5	17/12/2027	3.50%	3.30%	0.02%	103	7.04%
  ANZ Bank	AN3PI	Capital Notes 6	20/03/2028	3.00%	2.88%	0.01%	102.16	6.55%
  CBA	CBAPL	PERLS 15	15/06/2028	2.85%	3.11%	0.02%	101.76	6.46%
  Suncorp	SUNPI	Capital Notes 4	17/06/2028	2.90%	3.46%	0.02%	101.05	6.56%
  Westpac	WBCPL	Capital Notes 9	22/09/2028	3.40%	3.73%	0.02%	103.68	7.02%
  Macquarie Bank	MBLPD	Capital Notes 3	7/12/2028	2.90%	2.93%	0.01%	102.2	6.47%
  Bank of Queensland	BOQPG	Capital Notes 3	15/12/2028	3.40%	3.42%	0.01%	102.601	6.96%
  Judo Capital	JDOPA	Capital Notes	16/02/2029	6.50%	3.97%	0.02%	112	9.36%
  ANZ Bank	AN3PJ	Capital Notes 7	20/03/2029	2.70%	2.86%	0.01%	101.39	6.29%
  Challenger	CGFPD	Capital Notes 4	25/05/2029	3.60%	3.52%	0.01%	103.5	7.14%
  CBA	CBAPK	PERLS 14	15/06/2029	2.75%	2.96%	0.01%	101.77	6.35%
  IAG	IAGPE	Capital Notes 2	15/06/2029	3.50%	3.84%	0.01%	103	7.13%
  Macquarie Group	MQGPF	Capital Notes 6	12/09/2029	3.70%	2.87%	0.01%	105.3	7.06%
  Nat Aust Bank	NABPI	Capital Notes 6	17/09/2029	3.15%	2.79%	0.01%	103.77	6.63%
  Westpac	WBCPK	Capital Notes 8	21/09/2029	2.90%	3.30%	0.01%	103.04	6.55%
  ANZ Bank	AN3PK	Capital Notes 8	20/03/2030	2.75%	2.77%	0.01%	101.86	6.31%
  CBA	CBAPM	PERLS 16	17/06/2030	3.00%	2.57%	0.01%	104.19	6.45%
  Suncorp	SUNPJ	Capital Notes 5	17/06/2030	2.80%	2.99%	0.01%	101.76	6.40%
  Nat Aust Bank	NABPJ	Capital Notes 7	17/09/2030	2.80%	2.73%	0.01%	102.801	6.34%
  Bendigo Bank	BENPi	Capital Notes 2	13/12/2030	3.20%	3.18%	0.01%	102.85	6.75%
  Insurance Australia	IAGPF	Capital Notes 3	15/12/2030	3.20%	3.48%	0.01%	102.7	6.83%
  ANZ Bank	AN3PL	Capital Notes 9	20/03/2031	2.90%	2.74%	0.01%	102.69	6.41%
  Westpac	WBCPM	Capital Notes 10	22/09/2031	3.10%	3.18%	0.01%	104.21	6.67%
  Macquarie Group	MQGPG	Capital Notes 7	15/12/2031	2.65%	2.82%	0.01%	101.5	6.25%
  Nat Aust Bank	NABPK	Capital Notes 8	17/03/2032	2.60%	2.44%	0.01%	103.26	6.11%

• COMPANY	CODE	BOND TYPE	CALL DATE	ISSUE MARGIN (inc frank)	TRADING MARGIN	?DAY	CLOSING PRICE	RUNNING YIELD
  Nufarm	NFNG	Step Up	Perpetual	3.90%	5.39%	0.00%	87.2	8.97%
  Ramsay Health Care	RHCPA	Preference Share	Perpetual	4.85%	4.71%	0.00%	105.6	8.30%