18 September 2025

Summary –

The ASX hybrid market closed with a stable to slightly positive tone, reflecting cautious optimism amid steady macro conditions. Trading margins compressed modestly across several major bank-issued hybrids, suggesting continued demand for yield in a low-rate environment. Day-on-day price movements were minimal, reinforcing the market’s defensive posture.

Major Bank Hybrids

• Westpac Capital Notes 5 (WBCPH) led the pack with a running yield of 7.12%, closing at $100.70, reflecting strong demand for near-term maturity instruments.
• Macquarie Bank Capital Notes 2 (MBLPC) and AMP Capital Notes 2 (AMPPB) offered attractive yields of 8.52% and 8.40% respectively, with minimal price volatility.
• Longer-dated notes such as Westpac Capital Notes 10 (WBCPM) and CBA PERLS 16 (CBAPM) traded steadily, yielding 6.66% and 6.44%, indicating investor comfort with duration risk.

High-Yield Outliers

• Judo Capital Notes (JDOPA) stood out with a running yield of 9.55%, trading at $112.00, supported by its elevated margin of 6.50%.
• Latitude Capital Notes (LFSPA) also attracted attention with a 9.03% yield, despite trading below par at $97.90, reflecting perceived credit risk.

 Non-Standard Hybrids

• Nufarm Step-Up Perpetual (NFNG) offered a compelling 8.73% yield, trading at $90.50, with a trading margin of 5.17%.
• Ramsay Health Care Preference Share (RHCPA) remained resilient, closing at $108.64 with a running yield of 8.15%, appealing to income-focused investors.

Sector Trends

• Insurance and regional banks maintained mid-range yields between 6.5%–7.5%, with Bendigo (BENPH, BENPi) and IAG (IAGPE, IAGPF) hybrids showing consistent pricing.
• Big Four banks’ newer issues (e.g., NABPK, AN3PL) hovered around 6.1%–6.4%, with tight trading margins reflecting lower risk premiums.

 

 

 

 

 

• 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%	11198.49%	6977.94%	100.7	7.12%
  AMP Group	AMPPB	Capital Notes 2	16/12/2025	4.50%	23.43%	0.34%	100.1	8.40%
  Macquarie Bank	MBLPC	Capital Notes 2	22/12/2025	4.70%	17.80%	0.23%	100.72	8.52%
  Challenger	CGFPC	Capital Notes 3	25/05/2026	4.60%	8.69%	0.06%	102.66	8.36%
  Nat Aust Bank	NABPF	Capital Notes 3	17/06/2026	4.00%	7.80%	0.05%	101.7	7.75%
  Suncorp	SUNPH	Capital Notes 3	17/06/2026	3.00%	7.46%	0.05%	100.72	6.76%
  Macquarie Group	MQGPD	Capital Notes 4	10/09/2026	4.15%	5.98%	0.03%	102.3	7.83%
  CBA	CBAPJ	PERLS 13	20/10/2026	2.75%	5.45%	0.03%	101	6.47%
  Latitude	LFSPA	Capital Notes	27/10/2026	4.75%	13.50%	0.05%	97.9	9.03%
  Westpac	WBCPJ	Capital Notes 7	22/03/2027	3.40%	6.10%	0.02%	102.5	7.20%
  CBA	CBAPI	PERLS 12	20/04/2027	3.00%	4.13%	0.02%	102.25	6.65%
  Bank of Queensland	BOQPF	Capital Notes 2	14/05/2027	3.80%	4.94%	0.02%	103.73	7.47%
  Bendigo Bank	BENPH	Capital Notes	15/06/2027	3.80%	4.51%	0.02%	103.27	7.42%
  Macquarie Group	MQGPE	Capital Notes 5	20/09/2027	2.90%	3.44%	0.01%	102.4	6.51%
  Nat Aust Bank	NABPH	Capital Notes 5	17/12/2027	3.50%	3.91%	0.01%	103.4	7.10%
  ANZ Bank	AN3PI	Capital Notes 6	20/03/2028	3.00%	3.11%	0.01%	102.79	6.56%
  CBA	CBAPL	PERLS 15	15/06/2028	2.85%	3.39%	0.01%	102.62	6.47%
  Suncorp	SUNPI	Capital Notes 4	17/06/2028	2.90%	3.20%	0.01%	103.19	6.49%
  Westpac	WBCPL	Capital Notes 9	22/09/2028	3.40%	3.99%	0.01%	104.75	7.04%
  Macquarie Bank	MBLPD	Capital Notes 3	7/12/2028	2.90%	3.18%	0.01%	102.8	6.49%
  Bank of Queensland	BOQPG	Capital Notes 3	15/12/2028	3.40%	3.42%	0.01%	104.2	6.94%
  Judo Capital	JDOPA	Capital Notes	16/02/2029	6.50%	4.71%	0.01%	112	9.55%
  ANZ Bank	AN3PJ	Capital Notes 7	20/03/2029	2.70%	2.58%	0.00%	103.3	6.22%
  Challenger	CGFPD	Capital Notes 4	25/05/2029	3.60%	3.70%	0.01%	104.63	7.15%
  CBA	CBAPK	PERLS 14	15/06/2029	2.75%	2.94%	0.01%	103.3	6.32%
  IAG	IAGPE	Capital Notes 2	15/06/2029	3.50%	3.71%	0.01%	104.8	7.07%
  Macquarie Group	MQGPF	Capital Notes 6	12/09/2029	3.70%	2.91%	0.01%	106.49	7.05%
  Nat Aust Bank	NABPI	Capital Notes 6	17/09/2029	3.15%	2.69%	0.01%	105.599	6.59%
  Westpac	WBCPK	Capital Notes 8	21/09/2029	2.90%	3.64%	0.01%	103.6	6.59%
  ANZ Bank	AN3PK	Capital Notes 8	20/03/2030	2.75%	2.63%	0.00%	103.453	6.26%
  CBA	CBAPM	PERLS 16	17/06/2030	3.00%	2.59%	0.01%	105.6	6.44%
  Suncorp	SUNPJ	Capital Notes 5	17/06/2030	2.80%	2.76%	0.01%	104.07	6.33%
  Nat Aust Bank	NABPJ	Capital Notes 7	17/09/2030	2.80%	2.78%	0.01%	104.05	6.33%
  Bendigo Bank	BENPi	Capital Notes 2	13/12/2030	3.20%	3.15%	0.01%	104.5	6.72%
  Insurance Australia	IAGPF	Capital Notes 3	15/12/2030	3.20%	3.31%	0.00%	104.66	6.76%
  ANZ Bank	AN3PL	Capital Notes 9	20/03/2031	2.90%	2.69%	0.00%	104.028	6.38%
  Westpac	WBCPM	Capital Notes 10	22/09/2031	3.10%	3.22%	0.00%	105.65	6.66%
  Macquarie Group	MQGPG	Capital Notes 7	15/12/2031	2.65%	2.68%	0.00%	103.4	6.19%
  Nat Aust Bank	NABPK	Capital Notes 8	17/03/2032	2.60%	2.54%	0.00%	104.2	6.11%

• 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%	5.17%	0.00%	90.5	8.73%
  Ramsay Health Care	RHCPA	Preference Share	Perpetual	4.85%	4.59%	0.00%	108.639	8.15%