29 July 2025

Summary:

The Australian bank hybrid market saw a stable week with modest trading movements and broadly consistent yields across issuers. While no dramatic shifts were recorded, several securities edged higher, supported by investor interest in medium-term notes.

Key Observations:

• Top Yielding Instruments: Judo Capital’s JDOPA stood out with a running yield of 9.54% and strong pricing at $112, reflecting investor appetite for higher-margin offerings (6.50% margin). Latitude’s LFSPA also drew attention with a 9.20% yield and the highest trading margin at 12.73%.
• Major Bank Performers:
  • Macquarie Bank’s MBLPC and MBLPC offered running yields above 8.5%, benefiting from margins near 4.70%.
  • AMP Group’s AMPPB and Challenger’s CGFPC delivered competitive yields of 8.37% and 8.42% respectively.
  • Westpac’s WBCPH saw a slight price gain with a notable day change of 0.98%, closing at $99.97 and yielding 7.24%.
• Yield Compression Trends: Securities maturing in 2029–2032 show signs of yield compression as margin levels ease. For instance:
  • ANZ’s AN3PK and NAB’s NABPK had trading margins below 2.9%, with running yields around 6.25–6.46%.
  • These patterns suggest potential price stability or tightening spreads for long-dated hybrids.

• 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%	41.20%	0.98%	99.97	7.24%
  AMP Group	AMPPB	Capital Notes 2	16/12/2025	4.50%	10.24%	0.10%	101	8.37%
  Macquarie Bank	MBLPC	Capital Notes 2	22/12/2025	4.70%	9.30%	0.09%	101.049	8.54%
  Challenger	CGFPC	Capital Notes 3	25/05/2026	4.60%	6.59%	0.04%	102.47	8.42%
  Nat Aust Bank	NABPF	Capital Notes 3	17/06/2026	4.00%	5.30%	0.03%	102.099	7.77%
  Suncorp	SUNPH	Capital Notes 3	17/06/2026	3.00%	5.31%	0.03%	100.88	6.82%
  Macquarie Group	MQGPD	Capital Notes 4	10/09/2026	4.15%	4.59%	0.02%	102.5	7.87%
  CBA	CBAPJ	PERLS 13	20/10/2026	2.75%	4.23%	0.02%	101.05	6.55%
  Latitude	LFSPA	Capital Notes	27/10/2026	4.75%	12.73%	0.04%	96.5	9.20%
  Westpac	WBCPJ	Capital Notes 7	22/03/2027	3.40%	5.32%	0.02%	102.197	7.29%
  CBA	CBAPI	PERLS 12	20/04/2027	3.00%	3.61%	0.01%	101.91	6.75%
  Bank of Queensland	BOQPF	Capital Notes 2	14/05/2027	3.80%	4.82%	0.02%	102.58	7.60%
  Bendigo Bank	BENPH	Capital Notes	15/06/2027	3.80%	4.25%	0.01%	102.5	7.54%
  Macquarie Group	MQGPE	Capital Notes 5	20/09/2027	2.90%	3.49%	0.01%	101.39	6.66%
  Nat Aust Bank	NABPH	Capital Notes 5	17/12/2027	3.50%	3.56%	0.01%	103	7.19%
  ANZ Bank	AN3PI	Capital Notes 6	20/03/2028	3.00%	3.05%	0.01%	102.16	6.69%
  CBA	CBAPL	PERLS 15	15/06/2028	2.85%	3.32%	0.01%	101.76	6.61%
  Suncorp	SUNPI	Capital Notes 4	17/06/2028	2.90%	3.68%	0.01%	101.05	6.71%
  Westpac	WBCPL	Capital Notes 9	22/09/2028	3.40%	3.96%	0.01%	103.68	7.18%
  Macquarie Bank	MBLPD	Capital Notes 3	7/12/2028	2.90%	3.09%	0.01%	102.2	6.61%
  Bank of Queensland	BOQPG	Capital Notes 3	15/12/2028	3.40%	3.62%	0.01%	102.601	7.12%
  Judo Capital	JDOPA	Capital Notes	16/02/2029	6.50%	4.20%	0.01%	112	9.54%
  ANZ Bank	AN3PJ	Capital Notes 7	20/03/2029	2.70%	2.99%	0.00%	101.39	6.44%
  Challenger	CGFPD	Capital Notes 4	25/05/2029	3.60%	3.70%	0.01%	103.5	7.29%
  CBA	CBAPK	PERLS 14	15/06/2029	2.75%	3.12%	0.01%	101.77	6.50%
  IAG	IAGPE	Capital Notes 2	15/06/2029	3.50%	4.00%	0.01%	103	7.28%
  Macquarie Group	MQGPF	Capital Notes 6	12/09/2029	3.70%	3.00%	0.01%	105.3	7.21%
  Nat Aust Bank	NABPI	Capital Notes 6	17/09/2029	3.15%	2.95%	0.01%	103.77	6.78%
  Westpac	WBCPK	Capital Notes 8	21/09/2029	2.90%	3.47%	0.01%	103.04	6.70%
  ANZ Bank	AN3PK	Capital Notes 8	20/03/2030	2.75%	2.88%	0.00%	101.86	6.46%
  CBA	CBAPM	PERLS 16	17/06/2030	3.00%	2.70%	0.00%	104.19	6.60%
  Suncorp	SUNPJ	Capital Notes 5	17/06/2030	2.80%	3.13%	0.00%	101.76	6.55%
  Nat Aust Bank	NABPJ	Capital Notes 7	17/09/2030	2.80%	2.86%	0.00%	102.801	6.49%
  Bendigo Bank	BENPi	Capital Notes 2	13/12/2030	3.20%	3.31%	0.00%	102.85	6.90%
  Insurance Australia	IAGPF	Capital Notes 3	15/12/2030	3.20%	3.60%	0.00%	102.7	6.98%
  ANZ Bank	AN3PL	Capital Notes 9	20/03/2031	2.90%	2.84%	0.00%	102.69	6.55%
  Westpac	WBCPM	Capital Notes 10	22/09/2031	3.10%	3.31%	0.00%	104.21	6.83%
  Macquarie Group	MQGPG	Capital Notes 7	15/12/2031	2.65%	2.92%	0.00%	101.5	6.40%
  Nat Aust Bank	NABPK	Capital Notes 8	17/03/2032	2.60%	2.54%	0.00%	103.26	6.25%

• 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%	5.38%	0.05%	87.2	9.08%
  Ramsay Health Care	RHCPA	Preference Share	Perpetual	4.85%	4.69%	0.04%	105.6	8.39%