09 October 2025

Summary –

The Australian hybrid securities market showed mixed performance this week, with trading margins and running yields reflecting a cautious yet opportunistic investor sentiment amid ongoing macroeconomic uncertainty.

Major Bank Hybrids

Bank-issued hybrids continued to dominate the market in both volume and yield appeal:

  • Latitude’s LFSPA stood out with the highest trading margin of 13.87% and a running yield of 9.05%, reflecting elevated risk pricing.
  • Challenger’s CGFPC offered a strong running yield of 8.43% with a trading margin of 9.99%, suggesting robust demand for shorter-dated hybrids (maturity in May 2026).
  • NABPF and SUNPH, both maturing in mid-2026, traded with margins of 8.48% and 7.83% respectively, indicating continued appetite for near-term bank hybrids.

Longer-Dated Hybrids

Longer-dated issues saw more modest trading margins:

  • Macquarie’s MQGPG (Dec 2031) and NABPK (Mar 2032) traded at 2.82% and 2.50% margins respectively, with running yields around 6.25%–6.13%, reflecting investor preference for stability over yield in the long end.
  • Westpac’s WBCPM and ANZ’s AN3PL, both maturing in 2031, offered slightly higher yields of 6.68% and 6.37%.

Non-Standard Hybrids

Among non-standard hybrids:

  • Nufarm’s NFNG delivered a running yield of 9.15%, the highest in this category, with a trading margin of 5.57%.
  • Ramsay Health Care’s RHCPA remained steady with a yield of 8.43%, reflecting its appeal as a perpetual preference share.

Market Trends

  • The average trading margin across major bank hybrids continues to compress slightly, suggesting renewed investor confidence.
  • Running yields remain attractive, particularly in the 6.3%–7.5% range for most bank-issued notes, offering a compelling alternative to term deposits and government bonds.

 

  • ASX-Listed Hybrids 09.10.25

    COMPANYCODEHYBRID TYPEMATURITY/
    CALL
    DATE    		MARGIN
    INCL. CREDITS    		TRADING
    MARGIN    		DAY
    CHANGE    		DAY
    CLOSE    		RUNNING
    YIELD**
    ChallengerCGFPCCapital Notes 325-05-20264.60%9.99%0.07%102.668.43%
    Nat Aust BankNABPFCapital Notes 317-06-20264.00%8.48%-0.34%101.947.80%
    SuncorpSUNPHCapital Notes 317-06-20263.00%7.83%-0.62%101.136.79%
    Macquarie GroupMQGPDCapital Notes 410-09-20264.15%5.80%-0.75%102.957.83%
    CBACBAPJ PERLS 1320-10-20262.75%5.42%-0.58%101.566.49%
    LatitudeLFSPACapital Notes27-10-20264.75%13.87%-0.68%98.59.05%
    WestpacWBCPJCapital Notes 722-03-20273.40%6.32%-0.22%102.87.24%
    CBACBAPI PERLS 1220-04-20273.00%4.29%-0.17%102.56.69%
    Bank of QueenslandBOQPFCapital Notes 214-05-20273.80%5.01%-0.31%104.197.49%
    Bendigo BankBENPHCapital Notes15-06-20273.80%4.34%-0.49%104.0197.43%
    Macquarie GroupMQGPECapital Notes 520-09-20272.90%3.48%-0.17%102.76.54%
    Nat Aust BankNABPHCapital Notes 517-12-20273.50%3.87%-0.28%103.947.11%
    ANZ BankAN3PICapital Notes 620-03-20283.00%2.93%-0.33%103.56.56%
    CBACBAPL PERLS 1515-06-20282.85%3.33%-0.24%103.186.49%
    SuncorpSUNPICapital Notes 417-06-20282.90%3.43%0.05%103.16.55%
    WestpacWBCPLCapital Notes 922-09-20283.40%3.96%-0.22%105.37.06%
    Macquarie BankMBLPDCapital Notes 307-12-20282.90%3.09%-0.23%103.46.50%
    Bank of QueenslandBOQPGCapital Notes 315-12-20283.40%3.59%0.01%104.27.00%
    Judo CapitalJDOPACapital Notes16-02-20296.50%5.04%0.12%111.719.66%
    ANZ BankAN3PJCapital Notes 720-03-20292.70%2.85%0.16%102.856.29%
    ChallengerCGFPDCapital Notes 425-05-20293.60%3.21%-0.64%106.57.08%
    CBACBAPK PERLS 1415-06-20292.75%3.00%-0.08%103.546.36%
    IAGIAGPECapital Notes 215-06-20293.50%3.81%-0.03%104.97.12%
    Macquarie GroupMQGPFCapital Notes 612-09-20293.70%2.87%-0.16%1077.07%
    Nat Aust BankNABPICapital Notes 617-09-20293.15%2.90%0.09%105.346.66%
    WestpacWBCPKCapital Notes 821-09-20292.90%3.42%-0.37%104.746.57%
    ANZ BankAN3PKCapital Notes 820-03-20302.75%2.57%-0.15%1046.27%
    CBACBAPM PERLS 1617-06-20303.00%2.61%-0.08%105.926.47%
    SuncorpSUNPJCapital Notes 517-06-20302.80%3.03%0.16%103.516.41%
    Nat Aust BankNABPJCapital Notes 717-09-20302.80%2.78%-0.10%104.466.35%
    Bendigo BankBENPiCapital Notes 213-12-20303.20%2.91%-0.35%105.856.68%
    Insurance AustraliaIAGPFCapital Notes 315-12-20303.20%3.28%-0.12%105.146.77%
    ANZ BankAN3PLCapital Notes 920-03-20312.90%2.58%-0.18%104.786.37%
    WestpacWBCPMCapital Notes 1022-09-20313.10%3.21%-0.11%106.146.68%
    Macquarie GroupMQGPGCapital Notes 715-12-20312.65%2.82%0.06%103.156.25%
    Nat Aust BankNABPKCapital Notes 817-03-20322.60%2.50%-0.12%104.766.13%

  • ASX-Listed Hybrids (Non-standard) 09.10.25

    COMPANYCODEBOND TYPECALL DATEISSUE MARGIN (inc frank)TRADING MARGINDAYCLOSING PRICE RUNNING YIELD
    NufarmNFNGStep UpPerpetual3.90%5.57%0.27%889.15%
    Ramsay Health CareRHCPAPreference SharePerpetual4.85%4.85%0.16%106.758.43%