06 October 2025

Summary –

Australian Bank Hybrids: Market Snapshot – 6 October 2025

The latest trading data for ASX-listed bank hybrid securities reveals a mixed landscape, with notable divergence in trading margins and running yields across issuers and tenors.

Short-Dated Hybrids (2026–2027):

  • Latitude LFSPA stands out with a trading margin of 14.44% and a running yield of 9.11%, reflecting elevated risk pricing despite its 2026 call date.
  • Major bank hybrids such as NABPF, SUNPH, and CBAPJ show trading margins between 5.94% and 8.71%, with yields ranging from 6.53% to 7.81%, indicating moderate investor demand and stable pricing.

Mid-Dated Hybrids (2028–2029):

  • Judo Capital JDOPA leads in yield at 9.63%, supported by a high issue margin of 6.50%, suggesting strong compensation for perceived credit risk.
  • Hybrids from Westpac, ANZ, and CBA trade with margins between 2.67% and 4.16%, with yields clustering around 6.3% to 7.1%.

Long-Dated Hybrids (2030–2032):

  • Trading margins compress further, with most major bank hybrids (e.g., NABPJ, CBAPM, WBCPM) offering margins below 3.4%.
  • Running yields remain steady in the 6.2%–6.8% range, reflecting investor comfort with longer-dated bank paper amid stable credit conditions.

Market Trends:

  • Trading margins have generally narrowed across longer maturities, suggesting improved sentiment and lower risk premiums for Tier 1 bank issuers.
  • Running yields remain attractive, particularly for investors seeking income with moderate duration exposure.
  • Non-standard hybrids (e.g., RHCPA and NFNG) continue to trade at premiums, with RHCPA closing at 108.639 and yielding 8.26%, underscoring niche demand for perpetual structures.

  • ASX-Listed Hybrids

    COMPANYCODEHYBRID TYPEMATURITY/
    CALL
    DATE    		MARGIN
    INCL. CREDITS    		TRADING
    MARGIN    		DAY
    CHANGE    		DAY
    CLOSE    		RUNNING
    YIELD**
    ChallengerCGFPCCapital Notes 325-05-20264.60%9.79%0.19%102.668.43%
    Nat Aust BankNABPFCapital Notes 317-06-20264.00%8.71%0.16%101.77.81%
    SuncorpSUNPHCapital Notes 317-06-20263.00%8.35%0.16%100.726.81%
    Macquarie GroupMQGPDCapital Notes 410-09-20264.15%6.50%0.09%102.37.88%
    CBACBAPJ PERLS 1320-10-20262.75%5.94%0.08%1016.53%
    LatitudeLFSPACapital Notes27-10-20264.75%14.44%0.16%97.99.11%
    WestpacWBCPJCapital Notes 722-03-20273.40%6.50%0.07%102.57.26%
    CBACBAPI PERLS 1220-04-20273.00%4.43%0.05%102.256.71%
    Bank of QueenslandBOQPFCapital Notes 214-05-20273.80%5.28%0.06%103.737.53%
    Bendigo BankBENPHCapital Notes15-06-20273.80%4.80%0.05%103.277.48%
    Macquarie GroupMQGPECapital Notes 520-09-20272.90%3.63%0.03%102.46.56%
    Nat Aust BankNABPHCapital Notes 517-12-20273.50%4.12%0.03%103.47.15%
    ANZ BankAN3PICapital Notes 620-03-20283.00%3.24%0.02%102.796.60%
    CBACBAPL PERLS 1515-06-20282.85%3.55%0.03%102.626.52%
    SuncorpSUNPICapital Notes 417-06-20282.90%3.36%0.03%103.196.54%
    WestpacWBCPLCapital Notes 922-09-20283.40%4.16%0.03%104.757.09%
    Macquarie BankMBLPDCapital Notes 307-12-20282.90%3.30%0.02%102.86.53%
    Bank of QueenslandBOQPGCapital Notes 315-12-20283.40%3.57%0.02%104.26.99%
    Judo CapitalJDOPACapital Notes16-02-20296.50%4.90%0.03%1129.63%
    ANZ BankAN3PJCapital Notes 720-03-20292.70%2.67%0.01%103.36.26%
    ChallengerCGFPDCapital Notes 425-05-20293.60%3.84%0.02%104.637.21%
    CBACBAPK PERLS 1415-06-20292.75%3.06%0.02%103.36.37%
    IAGIAGPECapital Notes 215-06-20293.50%3.82%0.02%104.87.13%
    Macquarie GroupMQGPFCapital Notes 612-09-20293.70%3.01%0.02%106.497.10%
    Nat Aust BankNABPICapital Notes 617-09-20293.15%2.80%0.02%105.5996.64%
    WestpacWBCPKCapital Notes 821-09-20292.90%3.77%0.02%103.66.64%
    ANZ BankAN3PKCapital Notes 820-03-20302.75%2.71%0.01%103.4536.30%
    CBACBAPM PERLS 1617-06-20303.00%2.68%0.02%105.66.49%
    SuncorpSUNPJCapital Notes 517-06-20302.80%2.86%0.02%104.076.37%
    Nat Aust BankNABPJCapital Notes 717-09-20302.80%2.88%0.01%104.056.38%
    Bendigo BankBENPiCapital Notes 213-12-20303.20%3.25%0.02%104.56.77%
    Insurance AustraliaIAGPFCapital Notes 315-12-20303.20%3.39%0.01%104.666.80%
    ANZ BankAN3PLCapital Notes 920-03-20312.90%2.76%0.01%104.0286.42%
    WestpacWBCPMCapital Notes 1022-09-20313.10%3.31%0.01%105.656.71%
    Macquarie GroupMQGPGCapital Notes 715-12-20312.65%2.75%0.01%103.46.24%
    Nat Aust BankNABPKCapital Notes 817-03-20322.60%2.61%0.01%104.26.16%

  • ASX-Listed Hybrids (Non-standard)

    COMPANYCODEBOND TYPECALL DATEISSUE MARGIN (inc frank)TRADING MARGINDAYCLOSING PRICE RUNNING YIELD
    NufarmNFNGStep UpPerpetual3.90%5.28%0.00%90.58.87%
    Ramsay Health CareRHCPAPreference SharePerpetual4.85%4.68%0.00%108.6398.26%