02 October 2025

Summary –

Australian bank hybrid securities continue to offer attractive yields for income-focused investors. Among the ASX-listed standard hybrids:

  • Average Trading Margin: 6.13%
  • Average Running Yield: 6.81%

The highest running yield is currently offered by Latitude’s LFSPA at 9.12%, reflecting a trading margin of 14.23%.
In contrast, the lowest yield is observed in NABPK, with a running yield of 6.18% and a trading margin of 2.59%.

Non-standard hybrids also show strong performance:

  • Nufarm’s NFNG offers a yield of 8.90%
  • Ramsay Health Care’s RHCPA provides 8.29%

Despite their perpetual structures and unique bond types, these non-standard hybrids remain competitive in yield terms.

Major Banks

The scatter plot shows a tight clustering of margins between 2.5% and 3.5%, with call dates extending into 2032. Securities like CBAPK, NABPJ, and AN3PI are positioned with relatively lower margins, indicating strong investor demand and perceived stability.

Key Observations:

  • Longer-dated hybrids (2029–2032) tend to offer lower margins, reflecting confidence in major banks.
  • Securities with call dates in the near term (2026–2028) show slightly elevated margins, possibly due to refinancing risk or market uncertainty.

Other Financials ex Majors

This chart reveals a wider spread of margins, ranging from 1.0% to 4.0%, with issuers like BENPI, IAGPF, and MQGPE showing higher margins than their major bank counterparts.

Key Observations:

  • Non-major financials offer higher margins to compensate for perceived credit risk.
  • Some securities, like Judo Capital JDOPA, stand out with exceptionally high yields (9.64%), reflecting both risk premium and investor appetite for diversification.

 

Major banks - hybrids hybrids - other financial ex majors

 

 

  • COMPANYCODEHYBRID TYPEMATURITY/
    CALL
    DATE    		MARGIN
    INCL. CREDITS    		TRADING
    MARGIN    		DAY
    CHANGE    		DAY
    CLOSE    		RUNNING
    YIELD**
    ChallengerCGFPCCapital Notes 325-05-20264.60%9.54%0.07%102.668.45%
    Nat Aust BankNABPFCapital Notes 317-06-20264.00%8.50%0.05%101.77.83%
    SuncorpSUNPHCapital Notes 317-06-20263.00%8.14%0.05%100.726.83%
    Macquarie GroupMQGPDCapital Notes 410-09-20264.15%6.38%0.03%102.37.90%
    CBACBAPJ PERLS 1320-10-20262.75%5.83%0.03%1016.55%
    LatitudeLFSPACapital Notes27-10-20264.75%14.23%0.06%97.99.12%
    WestpacWBCPJCapital Notes 722-03-20273.40%6.41%0.03%102.57.28%
    CBACBAPI PERLS 1220-04-20273.00%4.36%0.02%102.256.73%
    Bank of QueenslandBOQPFCapital Notes 214-05-20273.80%5.21%0.02%103.737.55%
    Bendigo BankBENPHCapital Notes15-06-20273.80%4.73%0.02%103.277.50%
    Macquarie GroupMQGPECapital Notes 520-09-20272.90%3.59%0.01%102.46.58%
    Nat Aust BankNABPHCapital Notes 517-12-20273.50%4.08%0.01%103.47.17%
    ANZ BankAN3PICapital Notes 620-03-20283.00%3.21%0.01%102.796.63%
    CBACBAPL PERLS 1515-06-20282.85%3.52%0.01%102.626.55%
    SuncorpSUNPICapital Notes 417-06-20282.90%3.33%0.01%103.196.56%
    WestpacWBCPLCapital Notes 922-09-20283.40%4.12%0.01%104.757.12%
    Macquarie BankMBLPDCapital Notes 307-12-20282.90%3.27%0.01%102.86.56%
    Bank of QueenslandBOQPGCapital Notes 315-12-20283.40%3.54%0.01%104.27.01%
    Judo CapitalJDOPACapital Notes16-02-20296.50%4.86%0.01%1129.64%
    ANZ BankAN3PJCapital Notes 720-03-20292.70%2.65%0.01%103.36.29%
    ChallengerCGFPDCapital Notes 425-05-20293.60%3.81%0.01%104.637.23%
    CBACBAPK PERLS 1415-06-20292.75%3.03%0.01%103.36.40%
    IAGIAGPECapital Notes 215-06-20293.50%3.80%0.01%104.87.15%
    Macquarie GroupMQGPFCapital Notes 612-09-20293.70%2.99%0.01%106.497.13%
    Nat Aust BankNABPICapital Notes 617-09-20293.15%2.77%0.01%105.5996.66%
    WestpacWBCPKCapital Notes 821-09-20292.90%3.74%0.01%103.66.66%
    ANZ BankAN3PKCapital Notes 820-03-20302.75%2.69%0.01%103.4536.33%
    CBACBAPM PERLS 1617-06-20303.00%2.66%0.01%105.66.51%
    SuncorpSUNPJCapital Notes 517-06-20302.80%2.84%0.01%104.076.40%
    Nat Aust BankNABPJCapital Notes 717-09-20302.80%2.86%0.01%104.056.40%
    Bendigo BankBENPiCapital Notes 213-12-20303.20%3.23%0.01%104.56.79%
    Insurance AustraliaIAGPFCapital Notes 315-12-20303.20%3.37%0.01%104.666.83%
    ANZ BankAN3PLCapital Notes 920-03-20312.90%2.74%0.00%104.0286.44%
    WestpacWBCPMCapital Notes 1022-09-20313.10%3.29%0.01%105.656.73%
    Macquarie GroupMQGPGCapital Notes 715-12-20312.65%2.73%0.00%103.46.26%
    Nat Aust BankNABPKCapital Notes 817-03-20322.60%2.59%0.00%104.26.18%
  • COMPANYCODEBOND TYPECALL DATEISSUE MARGIN (inc frank)TRADING MARGIN?DAYCLOSING PRICE RUNNING YIELD
    NufarmNFNGStep UpPerpetual3.90%5.29%0.03%90.58.90%
    Ramsay Health CareRHCPAPreference SharePerpetual4.85%4.68%0.02%108.6398.29%