30 September 2025

Summary –

The hybrid securities market continues to offer attractive income opportunities for investors, with yields remaining well above benchmark rates.

• Average Trading Margin: 4.41%
• Average Running Yield: 7.06%

Top Performers

• Highest Trading Margin: Latitude (LFSPA) at 14.12%
• Highest Running Yield: Judo Capital (JDOPA) at 9.62%

Bottom Performers

• Lowest Trading Margin: National Australia Bank (NABPK) at 2.58%
• Lowest Running Yield: National Australia Bank (NABPK) at 6.16%

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Major Banks

The “Major Banks” scatter plot shows a tight clustering of securities with call dates between 2026 and 2032, and margins to BBSW generally ranging from 2.5% to 3.5%. This reflects:

• A compressed spread environment, typical of high-credit-quality issuers.
• Longer-dated hybrids tend to offer slightly lower margins, consistent with reduced reinvestment risk and investor preference for duration certainty.
• Securities such as CBAPK, AN3PL, and NABPK are positioned toward the lower end of the margin spectrum, reinforcing their lower-risk profile.

Other Financials (Ex Majors)

The “Other Financials Ex Majors” chart reveals a broader spread range, with margins to BBSW extending from 0.75% to 4.00%:

• Instruments like BOQPF, IAGPF, BENPI, and MQGPG offer higher margins, indicating either higher perceived risk or greater yield incentives.
• The wider dispersion suggests greater diversity in credit profiles and investor appetite for yield among non-major issuers.
• Notably, SUNPJ and MQGPF sit in the mid-range, balancing yield and credit quality.

 

• COMPANY	CODE	HYBRID TYPE	MATURITY/ CALL DATE	MARGIN INCL. CREDITS	TRADING MARGIN	DAY CHANGE	DAY CLOSE	RUNNING YIELD**
  Challenger	CGFPC	Capital Notes 3	25-05-2026	4.60%	9.41%	0.06%	102.66	8.42%
  Nat Aust Bank	NABPF	Capital Notes 3	17-06-2026	4.00%	8.39%	0.05%	101.7	7.81%
  Suncorp	SUNPH	Capital Notes 3	17-06-2026	3.00%	8.04%	0.05%	100.72	6.81%
  Macquarie Group	MQGPD	Capital Notes 4	10-09-2026	4.15%	6.32%	0.03%	102.3	7.88%
  CBA	CBAPJ	PERLS 13	20-10-2026	2.75%	5.78%	0.03%	101	6.52%
  Latitude	LFSPA	Capital Notes	27-10-2026	4.75%	14.12%	0.05%	97.9	9.10%
  Westpac	WBCPJ	Capital Notes 7	22-03-2027	3.40%	6.36%	0.02%	102.5	7.26%
  CBA	CBAPI	PERLS 12	20-04-2027	3.00%	4.33%	0.02%	102.25	6.71%
  Bank of Queensland	BOQPF	Capital Notes 2	14-05-2027	3.80%	5.17%	0.02%	103.73	7.52%
  Bendigo Bank	BENPH	Capital Notes	15-06-2027	3.80%	4.70%	0.02%	103.27	7.48%
  Macquarie Group	MQGPE	Capital Notes 5	20-09-2027	2.90%	3.56%	0.01%	102.4	6.56%
  Nat Aust Bank	NABPH	Capital Notes 5	17-12-2027	3.50%	4.05%	0.01%	103.4	7.15%
  ANZ Bank	AN3PI	Capital Notes 6	20-03-2028	3.00%	3.20%	0.01%	102.79	6.60%
  CBA	CBAPL	PERLS 15	15-06-2028	2.85%	3.50%	0.01%	102.62	6.52%
  Suncorp	SUNPI	Capital Notes 4	17-06-2028	2.90%	3.31%	0.01%	103.19	6.54%
  Westpac	WBCPL	Capital Notes 9	22-09-2028	3.40%	4.10%	0.01%	104.75	7.09%
  Macquarie Bank	MBLPD	Capital Notes 3	07-12-2028	2.90%	3.26%	0.01%	102.8	6.54%
  Bank of Queensland	BOQPG	Capital Notes 3	15-12-2028	3.40%	3.52%	0.01%	104.2	6.99%
  Judo Capital	JDOPA	Capital Notes	16-02-2029	6.50%	4.83%	0.01%	112	9.62%
  ANZ Bank	AN3PJ	Capital Notes 7	20-03-2029	2.70%	2.64%	0.00%	103.3	6.26%
  Challenger	CGFPD	Capital Notes 4	25-05-2029	3.60%	3.79%	0.01%	104.63	7.20%
  CBA	CBAPK	PERLS 14	15-06-2029	2.75%	3.02%	0.01%	103.3	6.37%
  IAG	IAGPE	Capital Notes 2	15-06-2029	3.50%	3.78%	0.01%	104.8	7.12%
  Macquarie Group	MQGPF	Capital Notes 6	12-09-2029	3.70%	2.98%	0.01%	106.49	7.10%
  Nat Aust Bank	NABPI	Capital Notes 6	17-09-2029	3.15%	2.76%	0.01%	105.599	6.64%
  Westpac	WBCPK	Capital Notes 8	21-09-2029	2.90%	3.73%	0.01%	103.6	6.64%
  ANZ Bank	AN3PK	Capital Notes 8	20-03-2030	2.75%	2.69%	0.00%	103.453	6.31%
  CBA	CBAPM	PERLS 16	17-06-2030	3.00%	2.65%	0.01%	105.6	6.48%
  Suncorp	SUNPJ	Capital Notes 5	17-06-2030	2.80%	2.83%	0.01%	104.07	6.37%
  Nat Aust Bank	NABPJ	Capital Notes 7	17-09-2030	2.80%	2.85%	0.01%	104.05	6.38%
  Bendigo Bank	BENPi	Capital Notes 2	13-12-2030	3.20%	3.22%	0.01%	104.5	6.77%
  Insurance Australia	IAGPF	Capital Notes 3	15-12-2030	3.20%	3.36%	0.00%	104.66	6.80%
  ANZ Bank	AN3PL	Capital Notes 9	20-03-2031	2.90%	2.73%	0.00%	104.028	6.42%
  Westpac	WBCPM	Capital Notes 10	22-09-2031	3.10%	3.28%	0.00%	105.65	6.71%
  Macquarie Group	MQGPG	Capital Notes 7	15-12-2031	2.65%	2.73%	0.00%	103.4	6.24%
  Nat Aust Bank	NABPK	Capital Notes 8	17-03-2032	2.60%	2.58%	0.00%	104.2	6.16%

• COMPANY	CODE	BOND TYPE	CALL DATE	ISSUE MARGIN (inc frank)	TRADING MARGIN	?DAY	CLOSING PRICE	RUNNING YIELD
  Nufarm	NFNG	Step Up	Perpetual	3.90%	5.26%	0.00%	90.5	8.85%
  Ramsay Health Care	RHCPA	Preference Share	Perpetual	4.85%	4.66%	0.00%	108.639	8.25%