14 October 2025

Summary-

ASX Hybrid Securities Market Update – October 14, 2025

The Australian hybrid securities market continues to offer a diverse range of investment opportunities, with both bank-issued and non-standard hybrids showing varied performance across yield, trading margins, and pricing.

Bank-Issued Hybrids: Stability with Selective Upside

The mainstream ASX-listed hybrids—primarily capital notes issued by major banks and financial institutions—are showing moderate trading margins and running yields in the range of 5.88% to 9.56% with a few standout performers:

• Judo Capital (JDOPA) leads the pack with a running yield of 9.56%, reflecting its higher margin of 6.50% and strong market demand.
• Latitude (LFSPA) also stands out with an 8.44% yield, driven by a high trading margin of 6.44%.
• Among the big four banks, CBA’s PERLS 13 (CBAPJ) and Westpac’s Capital Notes 7 (WBCPJ) offer solid yields of 6.21% and 6.77%, respectively, with relatively low trading margins, indicating investor confidence.

The average trading margin across bank hybrids remains around 1.62%, suggesting a stable risk premium environment. Most securities are trading slightly above face value, indicating healthy demand and perceived creditworthiness.

Non-Standard Hybrids: Higher Risk, Higher Reward

In contrast, the non-standard hybrids—such as step-up securities and preference shares—present higher yields but also greater volatility:

• Nufarm (NFNG) offers a compelling running yield of 8.58%, despite trading below par at $88, reflecting market caution around perpetual step-up structures.
• Ramsay Health Care (RHCPA) trades at a premium ($106.75) with a yield of 8.07%, showing investor appetite for preference shares from stable healthcare issuers.

These instruments often lack fixed maturity dates and may carry more complex terms, making them suitable for experienced investors seeking yield enhancement.

• ASX-Listed Hybrids 14.10.25

  COMPANY	CODE	HYBRID TYPE	MATURITY/ CALL DATE	MARGIN INCL. CREDITS	TRADING MARGIN	DAY CLOSE	RUNNING YIELD**
  Challenger	CGFPC	Capital Notes 3	25/05/2026	4.60%	-0.08%	102.66	7.94%
  Nat Aust Bank	NABPF	Capital Notes 3	17/06/2026	4.00%	0.64%	101.94	7.40%
  Suncorp	SUNPH	Capital Notes 3	17/06/2026	3.00%	0.89%	101.13	6.48%
  Macquarie Group	MQGPD	Capital Notes 4	10/09/2026	4.15%	0.59%	102.95	7.48%
  CBA	CBAPJ	PERLS 13	20/10/2026	2.75%	0.93%	101.56	6.21%
  Latitude	LFSPA	Capital Notes	27/10/2026	4.75%	6.44%	98.5	8.44%
  Westpac	WBCPJ	Capital Notes 7	22/03/2027	3.40%	1.20%	102.8	6.77%
  CBA	CBAPI	PERLS 12	20/04/2027	3.00%	1.11%	102.5	6.40%
  Bank of Queensland	BOQPF	Capital Notes 2	14/05/2027	3.80%	0.94%	104.19	7.07%
  Bendigo Bank	BENPH	Capital Notes	15/06/2027	3.80%	1.09%	104.019	7.07%
  Macquarie Group	MQGPE	Capital Notes 5	20/09/2027	2.90%	0.84%	102.7	6.24%
  Nat Aust Bank	NABPH	Capital Notes 5	17/12/2027	3.50%	1.41%	103.94	6.78%
  ANZ Bank	AN3PI	Capital Notes 6	20/03/2028	3.00%	1.35%	103.5	6.34%
  CBA	CBAPL	PERLS 15	15/06/2028	2.85%	1.45%	103.18	6.21%
  Suncorp	SUNPI	Capital Notes 4	17/06/2028	2.90%	1.54%	103.1	6.26%
  Westpac	WBCPL	Capital Notes 9	22/09/2028	3.40%	1.31%	105.3	6.61%
  Macquarie Bank	MBLPD	Capital Notes 3	7/12/2028	2.90%	1.64%	103.4	6.25%
  Bank of Queensland	BOQPG	Capital Notes 3	15/12/2028	3.40%	1.82%	104.2	6.67%
  Judo Capital	JDOPA	Capital Notes	16/02/2029	6.50%	4.68%	111.71	9.56%
  ANZ Bank	AN3PJ	Capital Notes 7	20/03/2029	2.70%	1.72%	102.85	6.09%
  Challenger	CGFPD	Capital Notes 4	25/05/2029	3.60%	1.47%	106.5	6.72%
  CBA	CBAPK	PERLS 14	15/06/2029	2.75%	1.59%	103.54	6.09%
  IAG	IAGPE	Capital Notes 2	15/06/2029	3.50%	1.92%	104.9	6.73%
  Macquarie Group	MQGPF	Capital Notes 6	12/09/2029	3.70%	1.54%	107	6.78%
  Nat Aust Bank	NABPI	Capital Notes 6	17/09/2029	3.15%	1.50%	105.34	6.36%
  Westpac	WBCPK	Capital Notes 8	21/09/2029	2.90%	1.45%	104.74	6.17%
  ANZ Bank	AN3PK	Capital Notes 8	20/03/2030	2.75%	1.65%	104	6.07%
  CBA	CBAPM	PERLS 16	17/06/2030	3.00%	1.43%	105.92	6.19%
  Suncorp	SUNPJ	Capital Notes 5	17/06/2030	2.80%	1.86%	103.51	6.14%
  Nat Aust Bank	NABPJ	Capital Notes 7	17/09/2030	2.80%	1.66%	104.46	6.08%
  Bendigo Bank	BENPi	Capital Notes 2	13/12/2030	3.20%	1.76%	105.85	6.38%
  Insurance Australia	IAGPF	Capital Notes 3	15/12/2030	3.20%	1.96%	105.14	6.43%
  ANZ Bank	AN3PL	Capital Notes 9	20/03/2031	2.90%	1.78%	104.78	6.16%
  Westpac	WBCPM	Capital Notes 10	22/09/2031	3.10%	1.75%	106.14	6.27%
  Macquarie Group	MQGPG	Capital Notes 7	15/12/2031	2.65%	1.99%	103.15	6.02%
  Nat Aust Bank	NABPK	Capital Notes 8	17/03/2032	2.60%	1.62%	104.76	5.88%

• ASX-Listed Hybrids (Non-standard) 14.10.25

  COMPANY	CODE	BOND TYPE	CALL DATE	ISSUE MARGIN (inc frank)	TRADING MARGIN	CLOSING PRICE	RUNNING YIELD
  Nufarm	NFNG	Step Up	Perpetual	3.90%	5.01%	88	8.58%
  Ramsay Health Care	RHCPA	Preference Share	Perpetual	4.85%	4.50%	106.75	8.07%