07 October 2025

Summary –

The ASX-listed hybrids currently reflect a blend of bank-issued capital notes and a few non-standard corporate instruments with attractive yields, providing diversified exposure for income-focused investors.

Most major bank and financial institution hybrids (capital notes/convertibles) offer running yields between 6.2% and 8.4%, with margins over BBSW generally ranging from 2.6% to 4.75% depending on term and credit quality. Shorter maturity hybrids (e.g., Challenger CGFPC, NABPF, Suncorp SUNPH) exhibit higher yields around 7-8%, reflecting ongoing investor demand and market risk pricing. Several outliers like Latitude LFSPA and Judo Capital JDOPA push yields above 9%, associated with greater credit risk and lower trading prices around or below par.

Longer-dated hybrids, notably from the majors (ANZ, Westpac, NAB, CBA), maintain tighter spreads but still deliver yields above 6%—notably strong considering the credit ratings and structural protections typical of these issues. Prices generally trade at or above par, indicating robust market support and relative liquidity. Hybrid investors are well-compensated for subordination risk, provided portfolios balance exposure across issuers and tenors.

This segment, concentrated in perpetual step-up and preference shares from Nufarm (NFNG) and Ramsay Health Care (RHCPA), continues to show strong yields—8.87% for NFNG and 8.26% for RHCPA—despite idiosyncratic risk. Both instruments trade above theoretical yield benchmarks for traditional subordinated bank notes, in part due to their perpetual nature and generally lower market prices (NFNG at 90.5, RHCPA at 108.6).

These hybrids offer higher returns but require careful credit analysis given less robust protections and call date uncertainty. Their strong running yields make them attractive for yield hunters, but portfolio allocation should take into account the lack of scheduled maturity and sector-specific risks

• ASX-Listed Hybrids 07.10.25

  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%	9.86%	0.07%	102.66	8.43%
  Nat Aust Bank	NABPF	Capital Notes 3	17-06-2026	4.00%	8.76%	0.05%	101.7	7.81%
  Suncorp	SUNPH	Capital Notes 3	17-06-2026	3.00%	8.40%	0.05%	100.72	6.81%
  Macquarie Group	MQGPD	Capital Notes 4	10-09-2026	4.15%	6.53%	0.03%	102.3	7.88%
  CBA	CBAPJ	PERLS 13	20-10-2026	2.75%	5.97%	0.03%	101	6.53%
  Latitude	LFSPA	Capital Notes	27-10-2026	4.75%	14.50%	0.05%	97.9	9.11%
  Westpac	WBCPJ	Capital Notes 7	22-03-2027	3.40%	6.52%	0.02%	102.5	7.26%
  CBA	CBAPI	PERLS 12	20-04-2027	3.00%	4.45%	0.02%	102.25	6.71%
  Bank of Queensland	BOQPF	Capital Notes 2	14-05-2027	3.80%	5.30%	0.02%	103.73	7.53%
  Bendigo Bank	BENPH	Capital Notes	15-06-2027	3.80%	4.81%	0.02%	103.27	7.48%
  Macquarie Group	MQGPE	Capital Notes 5	20-09-2027	2.90%	3.64%	0.01%	102.4	6.56%
  Nat Aust Bank	NABPH	Capital Notes 5	17-12-2027	3.50%	4.13%	0.01%	103.4	7.15%
  ANZ Bank	AN3PI	Capital Notes 6	20-03-2028	3.00%	3.25%	0.01%	102.79	6.60%
  CBA	CBAPL	PERLS 15	15-06-2028	2.85%	3.56%	0.01%	102.62	6.52%
  Suncorp	SUNPI	Capital Notes 4	17-06-2028	2.90%	3.37%	0.01%	103.19	6.54%
  Westpac	WBCPL	Capital Notes 9	22-09-2028	3.40%	4.17%	0.01%	104.75	7.10%
  Macquarie Bank	MBLPD	Capital Notes 3	07-12-2028	2.90%	3.30%	0.01%	102.8	6.54%
  Bank of Queensland	BOQPG	Capital Notes 3	15-12-2028	3.40%	3.58%	0.01%	104.2	7.00%
  Judo Capital	JDOPA	Capital Notes	16-02-2029	6.50%	4.91%	0.01%	112	9.63%
  ANZ Bank	AN3PJ	Capital Notes 7	20-03-2029	2.70%	2.68%	0.01%	103.3	6.26%
  Challenger	CGFPD	Capital Notes 4	25-05-2029	3.60%	3.84%	0.01%	104.63	7.21%
  CBA	CBAPK	PERLS 14	15-06-2029	2.75%	3.07%	0.01%	103.3	6.38%
  IAG	IAGPE	Capital Notes 2	15-06-2029	3.50%	3.83%	0.01%	104.8	7.13%
  Macquarie Group	MQGPF	Capital Notes 6	12-09-2029	3.70%	3.02%	0.01%	106.49	7.11%
  Nat Aust Bank	NABPI	Capital Notes 6	17-09-2029	3.15%	2.80%	0.01%	105.599	6.64%
  Westpac	WBCPK	Capital Notes 8	21-09-2029	2.90%	3.78%	0.01%	103.6	6.64%
  ANZ Bank	AN3PK	Capital Notes 8	20-03-2030	2.75%	2.71%	0.00%	103.453	6.31%
  CBA	CBAPM	PERLS 16	17-06-2030	3.00%	2.69%	0.01%	105.6	6.49%
  Suncorp	SUNPJ	Capital Notes 5	17-06-2030	2.80%	2.86%	0.01%	104.07	6.38%
  Nat Aust Bank	NABPJ	Capital Notes 7	17-09-2030	2.80%	2.88%	0.01%	104.05	6.38%
  Bendigo Bank	BENPi	Capital Notes 2	13-12-2030	3.20%	3.25%	0.01%	104.5	6.77%
  Insurance Australia	IAGPF	Capital Notes 3	15-12-2030	3.20%	3.39%	0.00%	104.66	6.81%
  ANZ Bank	AN3PL	Capital Notes 9	20-03-2031	2.90%	2.76%	0.00%	104.028	6.42%
  Westpac	WBCPM	Capital Notes 10	22-09-2031	3.10%	3.31%	0.01%	105.65	6.71%
  Macquarie Group	MQGPG	Capital Notes 7	15-12-2031	2.65%	2.75%	0.00%	103.4	6.24%
  Nat Aust Bank	NABPK	Capital Notes 8	17-03-2032	2.60%	2.61%	0.00%	104.2	6.16%

• ASX-Listed Hybrids (Non-standard) 07.10.25

  COMPANY	CODE	BOND TYPE	CALL DATE	ISSUE MARGIN (inc frank)	TRADING MARGIN	DAY	CLOSING PRICE	RUNNING YIELD
  Nufarm	NFNG	Step Up	Perpetual	3.90%	5.28%	0.00%	90.5	8.87%
  Ramsay Health Care	RHCPA	Preference Share	Perpetual	4.85%	4.68%	0.00%	108.639	8.26%