1 August 2025

Summary:

Market Highlights

Australian bank hybrids continued to deliver reliable yields this week, with performance remaining broadly steady across major issuers. Investors seeking consistent income were met with a range of attractive running yields and modest margin movements, underscoring ongoing demand in the income-oriented space.

 Market Highlights

• Yield Stability: Most bank-issued hybrids offered running yields between 6.30% and 7.20%, led by:
  • Westpac Capital Notes 5 (WBCPH) – 7.20%
  • NAB Capital Notes 5 (NABPH) – 7.07%
  • CBA PERLS 14 (CBAPK) – 6.38%
• Trading Margins: The spread between trading margins was notably wide, ranging from 2.34% (CBA PERLS 16) to 4.65% (Westpac Capital Notes 7), suggesting mixed investor appetite for duration risk.
• Price Action: Day-to-day price moves were generally muted. BOQPF and CBAPM saw the biggest single-session declines of 0.30% and 0.15%, respectively, while several notes posted marginal gains.

Issuer Performance

• Major Banks: Hybrids from CBA, NAB, ANZ, and Westpac remained well supported, trading near or just above par. Yields were consistent across these names, with little sign of volatility.
• Regional & Non-Bank Names: Judo Capital’s JDOPA stood out with a market-leading 9.45% running yield, buoyed by strong margin pricing. Hybrids from Bendigo Bank and Insurance Australia also held firm, appealing to income-focused investors seeking diversification.

• 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%	41.53%	0.65%	100.25	7.20%
  AMP Group	AMPPB	Capital Notes 2	16/12/2025	4.50%	7.94%	-0.20%	101.9	8.28%
  Macquarie Bank	MBLPC	Capital Notes 2	22/12/2025	4.70%	7.79%	0.86%	101.69	8.47%
  Challenger	CGFPC	Capital Notes 3	25/05/2026	4.60%	5.27%	0.57%	103.54	8.31%
  Nat Aust Bank	NABPF	Capital Notes 3	17/06/2026	4.00%	4.70%	0.13%	102.66	7.72%
  Suncorp	SUNPH	Capital Notes 3	17/06/2026	3.00%	4.39%	-0.22%	101.7	6.75%
  Macquarie Group	MQGPD	Capital Notes 4	10/09/2026	4.15%	3.65%	0.62%	103.52	7.78%
  CBA	CBAPJ	PERLS 13	20/10/2026	2.75%	3.52%	-0.07%	101.9	6.48%
  Latitude	LFSPA	Capital Notes	27/10/2026	4.75%	10.70%	-0.17%	98.6	8.98%
  Westpac	WBCPJ	Capital Notes 7	22/03/2027	3.40%	4.65%	-0.01%	103.23	7.20%
  CBA	CBAPI	PERLS 12	20/04/2027	3.00%	3.10%	-0.04%	102.75	6.68%
  Bank of Queensland	BOQPF	Capital Notes 2	14/05/2027	3.80%	4.59%	-0.30%	103	7.56%
  Bendigo Bank	BENPH	Capital Notes	15/06/2027	3.80%	3.52%	0.04%	103.76	7.43%
  Macquarie Group	MQGPE	Capital Notes 5	20/09/2027	2.90%	2.92%	-0.09%	102.5	6.57%
  Nat Aust Bank	NABPH	Capital Notes 5	17/12/2027	3.50%	2.86%	0.00%	104.5	7.07%
  ANZ Bank	AN3PI	Capital Notes 6	20/03/2028	3.00%	2.52%	-0.10%	103.4	6.59%
  CBA	CBAPL	PERLS 15	15/06/2028	2.85%	2.87%	0.09%	102.9	6.52%
  Suncorp	SUNPI	Capital Notes 4	17/06/2028	2.90%	3.09%	0.09%	102.5	6.59%
  Westpac	WBCPL	Capital Notes 9	22/09/2028	3.40%	3.54%	-0.11%	104.8	7.08%
  Macquarie Bank	MBLPD	Capital Notes 3	7/12/2028	2.90%	2.77%	0.03%	103.12	6.54%
  Bank of Queensland	BOQPG	Capital Notes 3	15/12/2028	3.40%	3.11%	0.13%	104.06	7.00%
  Judo Capital	JDOPA	Capital Notes	16/02/2029	6.50%	3.93%	-0.09%	112.85	9.45%
  ANZ Bank	AN3PJ	Capital Notes 7	20/03/2029	2.70%	2.58%	-0.04%	102.64	6.34%
  Challenger	CGFPD	Capital Notes 4	25/05/2029	3.60%	3.26%	0.16%	104.9	7.18%
  CBA	CBAPK	PERLS 14	15/06/2029	2.75%	2.59%	0.03%	103.46	6.38%
  IAG	IAGPE	Capital Notes 2	15/06/2029	3.50%	3.43%	0.01%	104.77	7.14%
  Macquarie Group	MQGPF	Capital Notes 6	12/09/2029	3.70%	2.76%	-0.06%	106.16	7.13%
  Nat Aust Bank	NABPI	Capital Notes 6	17/09/2029	3.15%	2.63%	-0.13%	104.85	6.69%
  Westpac	WBCPK	Capital Notes 8	21/09/2029	2.90%	3.26%	-0.04%	103.79	6.63%
  ANZ Bank	AN3PK	Capital Notes 8	20/03/2030	2.75%	2.52%	-0.09%	103.18	6.36%
  CBA	CBAPM	PERLS 16	17/06/2030	3.00%	2.34%	-0.15%	105.597	6.50%
  Suncorp	SUNPJ	Capital Notes 5	17/06/2030	2.80%	2.77%	0.09%	103.14	6.45%
  Nat Aust Bank	NABPJ	Capital Notes 7	17/09/2030	2.80%	2.41%	-0.09%	104.6	6.36%
  Bendigo Bank	BENPi	Capital Notes 2	13/12/2030	3.20%	2.85%	0.11%	104.75	6.76%
  Insurance Australia	IAGPF	Capital Notes 3	15/12/2030	3.20%	3.19%	0.09%	104.32	6.85%
  ANZ Bank	AN3PL	Capital Notes 9	20/03/2031	2.90%	2.34%	-0.14%	104.82	6.40%
  Westpac	WBCPM	Capital Notes 10	22/09/2031	3.10%	2.90%	-0.06%	106.011	6.69%
  Macquarie Group	MQGPG	Capital Notes 7	15/12/2031	2.65%	2.64%	0.03%	102.81	6.30%
  Nat Aust Bank	NABPK	Capital Notes 8	17/03/2032	2.60%	2.49%	0.00%	103.53	6.22%

• 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%	5.27%	-0.06%	88.3	8.95%
  Ramsay Health Care	RHCPA	Preference Share	Perpetual	4.85%	4.54%	0.02%	107.61	8.22%