03 October 2025

Summary –

Standard Bank Hybrids

Australian bank-issued hybrid securities continue to offer competitive yields for income-focused investors.

  • Average Trading Margin: 6.14%
  • Average Running Yield: 6.81%

Top Performer:
Latitude (LFSPA)

  • Running Yield: 9.12%
  • Trading Margin: 14.28%

Lowest Yield:
NABPK (NAB Capital Notes 8)

  • Running Yield: 6.18%
  • Trading Margin: 2.60%

Non-Standard Hybrids

These perpetual instruments, while structurally different, continue to deliver strong returns:

  • Nufarm (NFNG) – Running Yield: 8.89%, Trading Margin: 5.28%
  • Ramsay Health Care (RHCPA) – Running Yield: 8.28%, Trading Margin: 4.67%

Major Banks

The scatter plot shows a concentrated spread of margins between 2.00% and 3.25%, with call dates extending from June 2024 to June 2032.

  • Highest Margin: Westpac WBCPM (~3.25%)
  • Lowest Margin: NABPI (~2.00%)
  • Trend: Longer-dated hybrids (2029–2032) tend to offer lower margins, reflecting investor confidence in major banks’ creditworthiness.

Other Financials Ex Majors

Margins range more widely, from 2.50% to 3.75%, indicating higher risk premiums for non-major issuers.

  • Highest Margin: IAGPE (~3.75%)
  • Lowest Margin: MQGPG (~2.50%)
  • Trend: Most instruments cluster around June 2027–2030, suggesting active issuance and investor interest in mid-term callable structures.

 

Hybrids - major banks hybrids - other financials ex majors
  • COMPANYCODEHYBRID TYPEMATURITY/
    CALL
    DATE    		MARGIN
    INCL. CREDITS    		TRADING
    MARGIN    		DAY
    CHANGE    		DAY
    CLOSE    		RUNNING
    YIELD**
    ChallengerCGFPCCapital Notes 325-05-20264.60%9.60%0.06%102.668.45%
    Nat Aust BankNABPFCapital Notes 317-06-20264.00%8.55%0.05%101.77.83%
    SuncorpSUNPHCapital Notes 317-06-20263.00%8.19%0.05%100.726.83%
    Macquarie GroupMQGPDCapital Notes 410-09-20264.15%6.41%0.03%102.37.90%
    CBACBAPJ PERLS 1320-10-20262.75%5.86%0.03%1016.54%
    LatitudeLFSPACapital Notes27-10-20264.75%14.28%0.05%97.99.12%
    WestpacWBCPJCapital Notes 722-03-20273.40%6.43%0.02%102.57.28%
    CBACBAPI PERLS 1220-04-20273.00%4.38%0.02%102.256.73%
    Bank of QueenslandBOQPFCapital Notes 214-05-20273.80%5.22%0.02%103.737.54%
    Bendigo BankBENPHCapital Notes15-06-20273.80%4.75%0.02%103.277.50%
    Macquarie GroupMQGPECapital Notes 520-09-20272.90%3.60%0.01%102.46.57%
    Nat Aust BankNABPHCapital Notes 517-12-20273.50%4.09%0.01%103.47.17%
    ANZ BankAN3PICapital Notes 620-03-20283.00%3.22%0.01%102.796.62%
    CBACBAPL PERLS 1515-06-20282.85%3.53%0.01%102.626.54%
    SuncorpSUNPICapital Notes 417-06-20282.90%3.34%0.01%103.196.56%
    WestpacWBCPLCapital Notes 922-09-20283.40%4.13%0.01%104.757.11%
    Macquarie BankMBLPDCapital Notes 307-12-20282.90%3.28%0.01%102.86.55%
    Bank of QueenslandBOQPGCapital Notes 315-12-20283.40%3.55%0.01%104.27.01%
    Judo CapitalJDOPACapital Notes16-02-20296.50%4.87%0.01%1129.64%
    ANZ BankAN3PJCapital Notes 720-03-20292.70%2.66%0.00%103.36.28%
    ChallengerCGFPDCapital Notes 425-05-20293.60%3.81%0.01%104.637.22%
    CBACBAPK PERLS 1415-06-20292.75%3.04%0.01%103.36.39%
    IAGIAGPECapital Notes 215-06-20293.50%3.80%0.01%104.87.14%
    Macquarie GroupMQGPFCapital Notes 612-09-20293.70%2.99%0.01%106.497.12%
    Nat Aust BankNABPICapital Notes 617-09-20293.15%2.78%0.01%105.5996.66%
    WestpacWBCPKCapital Notes 821-09-20292.90%3.75%0.01%103.66.66%
    ANZ BankAN3PKCapital Notes 820-03-20302.75%2.70%0.00%103.4536.32%
    CBACBAPM PERLS 1617-06-20303.00%2.66%0.01%105.66.50%
    SuncorpSUNPJCapital Notes 517-06-20302.80%2.84%0.01%104.076.39%
    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%3.38%0.00%104.666.82%
    ANZ BankAN3PLCapital Notes 920-03-20312.90%2.75%0.00%104.0286.44%
    WestpacWBCPMCapital Notes 1022-09-20313.10%3.29%0.00%105.656.73%
    Macquarie GroupMQGPGCapital Notes 715-12-20312.65%2.74%0.00%103.46.25%
    Nat Aust BankNABPKCapital Notes 817-03-20322.60%2.60%0.00%104.26.18%
  • COMPANYCODEBOND TYPECALL DATEISSUE MARGIN (inc frank)TRADING MARGIN?DAYCLOSING PRICE RUNNING YIELD
    NufarmNFNGStep UpPerpetual3.90%5.28%0.00%90.58.89%
    Ramsay Health CareRHCPAPreference SharePerpetual4.85%4.67%0.00%108.6398.28%