9 September 2025

Summary –

Margin Trends

  • Trading margins for major bank hybrids range from 2.37% to 3.56%, indicating relatively tight spreads and strong investor confidence.
  • CBA hybrids (CBAPL, CBAPK, CBAPM) are trading at lower margins (around 2.5%–3.2%), reflecting their high credit quality and liquidity.
  • ANZ instruments (AN3PJ, AN3PK, AN3PL) show the lowest margins in the group, between 2.26% and 2.42%, suggesting strong demand and perceived safety.
  • NAB hybrids (NABPI, NABPJ, NABPK) and Westpac (WBCPM) are slightly higher, around 2.7%–2.94%, still within a competitive range.

 Yield Snapshot

  • Running yields across major bank hybrids sit between 6.13% and 6.60%, offering moderate income with low volatility.
  • Instruments with longer call dates (e.g., 2030–2032) tend to offer slightly higher yields to compensate for duration risk.

Market Sentiment

  • The clustering of margins below 3.0% suggests a flight to quality, with investors prioritizing stability over yield.
  • The tight spread between issue margin and trading margin implies limited secondary market discounting, reinforcing confidence in these issuers.

 

 

  • ASX-Listed Hybrids

    COMPANYCODEHYBRID TYPEMATURITY/
    CALL
    DATE    		MARGIN
    INCL. CREDITS    		TRADING
    MARGIN    		DAY
    CHANGE    		DAY
    CLOSE    		RUNNING
    YIELD**
    WestpacWBCPHCapital Notes 522-09-20253.20%330.34%44.25%100.527.13%
    AMP GroupAMPPBCapital Notes 216-12-20254.50%16.66%0.22%1018.32%
    Macquarie BankMBLPCCapital Notes 222-12-20254.70%16.66%0.20%100.538.54%
    ChallengerCGFPCCapital Notes 325-05-20264.60%8.46%0.05%102.58.38%
    Nat Aust BankNABPFCapital Notes 317-06-20264.00%7.13%0.04%101.887.74%
    SuncorpSUNPHCapital Notes 317-06-20263.00%6.64%0.04%101.016.74%
    Macquarie GroupMQGPDCapital Notes 410-09-20264.15%5.47%0.02%102.557.81%
    CBACBAPJ PERLS 1320-10-20262.75%5.12%0.02%101.16.47%
    LatitudeLFSPACapital Notes27-10-20264.75%11.86%0.04%98.988.92%
    WestpacWBCPJCapital Notes 722-03-20273.40%4.81%0.02%103.957.10%
    CBACBAPI PERLS 1220-04-20273.00%4.03%0.02%102.26.66%
    Bank of QueenslandBOQPFCapital Notes 214-05-20273.80%4.99%0.02%103.417.49%
    Bendigo BankBENPHCapital Notes15-06-20273.80%4.67%0.02%102.817.46%
    Macquarie GroupMQGPECapital Notes 520-09-20272.90%3.53%0.01%102.076.54%
    Nat Aust BankNABPHCapital Notes 517-12-20273.50%3.96%0.01%103.17.12%
    ANZ BankAN3PICapital Notes 620-03-20283.00%2.42%0.01%104.156.48%
    CBACBAPL PERLS 1515-06-20282.85%3.23%0.01%102.816.47%
    SuncorpSUNPICapital Notes 417-06-20282.90%3.21%0.01%102.996.51%
    WestpacWBCPLCapital Notes 922-09-20283.40%3.56%0.01%105.616.98%
    Macquarie BankMBLPDCapital Notes 307-12-20282.90%3.26%0.01%102.436.52%
    Bank of QueenslandBOQPGCapital Notes 315-12-20283.40%3.48%0.01%103.876.97%
    Judo CapitalJDOPACapital Notes16-02-20296.50%4.61%0.01%112.019.54%
    ANZ BankAN3PJCapital Notes 720-03-20292.70%2.42%0.00%103.656.21%
    ChallengerCGFPDCapital Notes 425-05-20293.60%3.75%0.01%104.287.18%
    CBACBAPK PERLS 1415-06-20292.75%2.95%0.01%103.16.34%
    IAGIAGPECapital Notes 215-06-20293.50%3.62%0.01%104.897.07%
    Macquarie GroupMQGPFCapital Notes 612-09-20293.70%3.08%0.01%105.87.11%
    Nat Aust BankNABPICapital Notes 617-09-20293.15%2.96%0.01%104.556.66%
    WestpacWBCPKCapital Notes 821-09-20292.90%3.07%0.01%105.196.49%
    ANZ BankAN3PKCapital Notes 820-03-20302.75%2.37%0.00%104.256.22%
    CBACBAPM PERLS 1617-06-20303.00%2.54%0.01%105.586.44%
    SuncorpSUNPJCapital Notes 517-06-20302.80%2.81%0.00%103.726.35%
    Nat Aust BankNABPJCapital Notes 717-09-20302.80%2.70%0.00%104.26.33%
    Bendigo BankBENPiCapital Notes 213-12-20303.20%3.13%0.00%104.46.73%
    Insurance AustraliaIAGPFCapital Notes 315-12-20303.20%3.28%0.00%104.626.77%
    ANZ BankAN3PLCapital Notes 920-03-20312.90%2.26%0.00%105.716.28%
    WestpacWBCPMCapital Notes 1022-09-20313.10%2.94%0.00%106.656.60%
    Macquarie GroupMQGPGCapital Notes 715-12-20312.65%2.89%0.00%102.316.27%
    Nat Aust BankNABPKCapital Notes 817-03-20322.60%2.55%0.00%103.986.13%

  • ASX-Listed Hybrids (Non-standard)

    COMPANYCODEBOND TYPECALL DATEISSUE MARGIN (inc frank)TRADING MARGINDAYCLOSING PRICE RUNNING YIELD
    NufarmNFNGStep UpPerpetual3.90%5.21%-0.02%89.88.78%
    Ramsay Health CareRHCPAPreference SharePerpetual4.85%4.53%-0.02%108.998.10%