14 August 2025

Summary –

Hybrid securities continue to offer Australian investors a compelling blend of fixed income and equity-like features. Our latest review of ASX-listed hybrids reveals a diverse landscape of instruments, ranging from traditional capital notes to more niche offerings like step-up securities and perpetual preference shares.

Key Highlights

Standard Hybrids

The mainstream hybrid market remains dominated by Capital Notes issued by major banks and financial institutions.

These instruments typically offer:

• Maturity/Call dates ranging from 2025 to 2032
• Margins between 2.3% and 4.7%
• Running yields mostly in the 6.2%–8.8% range

Notable performers include:

• Judo Capital (JDOPA) with a standout running yield of 9.56%
• Latitude (LFSPA) offering 9.91% trading margin, reflecting higher perceived risk or market demand

These hybrids are attractive for income-focused investors, especially those seeking franked distributions and diversification away from traditional bonds.

Non-standard Hybrids

The non-standard segment includes step-up securities and preference shares, which are less common but can offer unique benefits:

• Nufarm (NFNG) shows a strong running yield of 8.83% with a step-up structure
• Ramsay Health Care (RHCPA) offers a preference share with a yield of 8.23%

These instruments often come with perpetual call dates, meaning they may never be redeemed unless the issuer chooses to do so. This adds complexity but can be beneficial for long-term income seekers.

Market Trends & Considerations

• Trading margins vary widely, indicating differing levels of market confidence and liquidity.
• Perpetual hybrids require careful analysis of issuer strength and call likelihood.
• Step-up features may provide protection against rising interest rates, but also introduce pricing volatility.

 

• 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%	59.34%	2.31%	100.381	7.16%
  AMP Group	AMPPB	Capital Notes 2	16/12/2025	4.50%	8.46%	0.63%	102.13	8.23%
  Macquarie Bank	MBLPC	Capital Notes 2	22/12/2025	4.70%	6.91%	-0.66%	102.35	8.39%
  Challenger	CGFPC	Capital Notes 3	25/05/2026	4.60%	7.44%	2.37%	102.34	8.39%
  Nat Aust Bank	NABPF	Capital Notes 3	17/06/2026	4.00%	4.60%	0.17%	103.05	7.66%
  Suncorp	SUNPH	Capital Notes 3	17/06/2026	3.00%	4.45%	-0.02%	101.95	6.70%
  Macquarie Group	MQGPD	Capital Notes 4	10/09/2026	4.15%	3.97%	0.04%	103.44	7.76%
  CBA	CBAPJ	PERLS 13	20/10/2026	2.75%	3.33%	0.08%	102.38	6.42%
  Latitude	LFSPA	Capital Notes	27/10/2026	4.75%	9.91%	-0.92%	99.85	8.84%
  Westpac	WBCPJ	Capital Notes 7	22/03/2027	3.40%	4.68%	-0.05%	103.5	7.15%
  CBA	CBAPI	PERLS 12	20/04/2027	3.00%	2.98%	-0.07%	103.2	6.62%
  Bank of Queensland	BOQPF	Capital Notes 2	14/05/2027	3.80%	4.81%	-0.04%	103	7.53%
  Bendigo Bank	BENPH	Capital Notes	15/06/2027	3.80%	2.82%	-0.41%	105.18	7.30%
  Macquarie Group	MQGPE	Capital Notes 5	20/09/2027	2.90%	2.49%	-0.28%	103.52	6.47%
  Nat Aust Bank	NABPH	Capital Notes 5	17/12/2027	3.50%	2.96%	-0.03%	104.54	7.04%
  ANZ Bank	AN3PI	Capital Notes 6	20/03/2028	3.00%	2.48%	-0.09%	103.66	6.54%
  CBA	CBAPL	PERLS 15	15/06/2028	2.85%	2.63%	0.01%	103.73	6.43%
  Suncorp	SUNPI	Capital Notes 4	17/06/2028	2.90%	3.06%	0.10%	102.83	6.54%
  Westpac	WBCPL	Capital Notes 9	22/09/2028	3.40%	3.41%	-0.05%	105.41	7.01%
  Macquarie Bank	MBLPD	Capital Notes 3	7/12/2028	2.90%	2.61%	0.02%	103.75	6.46%
  Bank of Queensland	BOQPG	Capital Notes 3	15/12/2028	3.40%	2.65%	-0.20%	105.57	6.87%
  Judo Capital	JDOPA	Capital Notes	16/02/2029	6.50%	4.50%	0.08%	111.61	9.56%
  ANZ Bank	AN3PJ	Capital Notes 7	20/03/2029	2.70%	2.41%	0.04%	103.32	6.26%
  Challenger	CGFPD	Capital Notes 4	25/05/2029	3.60%	3.38%	0.18%	104.79	7.16%
  CBA	CBAPK	PERLS 14	15/06/2029	2.75%	2.56%	-0.09%	103.8	6.33%
  IAG	IAGPE	Capital Notes 2	15/06/2029	3.50%	3.26%	0.38%	105.5	7.06%
  Macquarie Group	MQGPF	Capital Notes 6	12/09/2029	3.70%	2.63%	0.01%	106.8	7.06%
  Nat Aust Bank	NABPI	Capital Notes 6	17/09/2029	3.15%	2.56%	0.24%	105.35	6.63%
  Westpac	WBCPK	Capital Notes 8	21/09/2029	2.90%	2.95%	-0.16%	105.03	6.52%
  ANZ Bank	AN3PK	Capital Notes 8	20/03/2030	2.75%	2.37%	-0.04%	103.9	6.28%
  CBA	CBAPM	PERLS 16	17/06/2030	3.00%	2.28%	-0.21%	106.09	6.43%
  Suncorp	SUNPJ	Capital Notes 5	17/06/2030	2.80%	2.76%	0.04%	103.43	6.40%
  Nat Aust Bank	NABPJ	Capital Notes 7	17/09/2030	2.80%	2.46%	-0.07%	104.63	6.33%
  Bendigo Bank	BENPi	Capital Notes 2	13/12/2030	3.20%	2.79%	-0.04%	105.25	6.69%
  Insurance Australia	IAGPF	Capital Notes 3	15/12/2030	3.20%	2.99%	-0.08%	105.35	6.75%
  ANZ Bank	AN3PL	Capital Notes 9	20/03/2031	2.90%	2.31%	-0.02%	105.1	6.35%
  Westpac	WBCPM	Capital Notes 10	22/09/2031	3.10%	2.90%	0.00%	106.3	6.64%
  Macquarie Group	MQGPG	Capital Notes 7	15/12/2031	2.65%	2.62%	0.00%	103.11	6.25%
  Nat Aust Bank	NABPK	Capital Notes 8	17/03/2032	2.60%	2.39%	-0.01%	104.26	6.14%

• 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%	5.20%	-0.19%	89.5	8.83%
  Ramsay Health Care	RHCPA	Preference Share	Perpetual	4.85%	4.59%	-0.04%	107.56	8.23%