16 October 2025

Summary-

The Australian bank hybrid securities market remained relatively stable this week, with trading margins showing modest movement across the board. Investors continued to favour shorter-dated hybrids with higher running yields, while longer-dated instruments saw steady demand despite slightly compressed margins.

Key Highlights:

• Top Performing Hybrids (by Running Yield):
  • Judo Capital (JDOPA) led the pack with a 9.53% running yield, supported by a high issue margin of 6.50% and strong market pricing at $111.71.
  • Latitude (LFSPA) also stood out with an 8.43% yield, reflecting its elevated trading margin of 6.46%.
  • Challenger (CGFPC) offered a 7.93% yield, despite a slightly negative trading margin, indicating strong investor appetite.
• Major Bank Hybrids:
  • CBA’s PERLS 13 (CBAPJ) and PERLS 15 (CBAPL) delivered yields of 6.20%, with trading margins around 0.93%–1.46%.
  • Westpac’s Capital Notes 7 (WBCPJ) and Capital Notes 9 (WBCPL) offered yields of 6.75% and 6.59%, respectively.
  • ANZ’s Capital Notes 6 (AN3PI) and Capital Notes 9 (AN3PL) hovered around 6.33%–6.15% yields.
• Trading Margins:
  • Most major bank hybrids traded with margins between 0.85% and 1.99%, suggesting a balanced risk-reward outlook.
  • Longer-dated hybrids (maturing in 2030–2032) maintained yields in the 6.00%–6.40% range, reflecting investor confidence in bank credit quality.

Non-Standard Hybrids:

• Ramsay Health Care (RHCPA) and Nufarm (NFNG) continued to attract niche interest:
  • RHCPA traded at $106.75 with a 7.92% yield.
  • NFNG, despite a lower price of $88, offered a compelling 8.54% yield, driven by its step-up structure.

• ASX-Listed Hybrids 16.10.25

  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%	-0.10%	102.66	7.93%
  Nat Aust Bank	NABPF	Capital Notes 3	17/06/2026	4.00%	0.63%	101.94	7.39%
  Suncorp	SUNPH	Capital Notes 3	17/06/2026	3.00%	0.89%	101.13	6.47%
  Macquarie Group	MQGPD	Capital Notes 4	10/09/2026	4.15%	0.59%	102.95	7.47%
  CBA	CBAPJ	PERLS 13	20/10/2026	2.75%	0.93%	101.56	6.20%
  Latitude	LFSPA	Capital Notes	27/10/2026	4.75%	6.46%	98.50	8.43%
  Westpac	WBCPJ	Capital Notes 7	22/03/2027	3.40%	1.20%	102.80	6.75%
  CBA	CBAPI	PERLS 12	20/04/2027	3.00%	1.11%	102.50	6.38%
  Bank of Queensland	BOQPF	Capital Notes 2	14/05/2027	3.80%	0.93%	104.19	7.05%
  Bendigo Bank	BENPH	Capital Notes	15/06/2027	3.80%	1.08%	104.02	7.06%
  Macquarie Group	MQGPE	Capital Notes 5	20/09/2027	2.90%	0.85%	102.70	6.23%
  Nat Aust Bank	NABPH	Capital Notes 5	17/12/2027	3.50%	1.42%	103.94	6.77%
  ANZ Bank	AN3PI	Capital Notes 6	20/03/2028	3.00%	1.35%	103.50	6.33%
  CBA	CBAPL	PERLS 15	15/06/2028	2.85%	1.46%	103.18	6.20%
  Suncorp	SUNPI	Capital Notes 4	17/06/2028	2.90%	1.54%	103.10	6.25%
  Westpac	WBCPL	Capital Notes 9	22/09/2028	3.40%	1.31%	105.30	6.59%
  Macquarie Bank	MBLPD	Capital Notes 3	7/12/2028	2.90%	1.65%	103.40	6.24%
  Bank of Queensland	BOQPG	Capital Notes 3	15/12/2028	3.40%	1.82%	104.20	6.66%
  Judo Capital	JDOPA	Capital Notes	16/02/2029	6.50%	4.66%	111.71	9.53%
  ANZ Bank	AN3PJ	Capital Notes 7	20/03/2029	2.70%	1.72%	102.85	6.08%
  Challenger	CGFPD	Capital Notes 4	25/05/2029	3.60%	1.47%	106.50	6.71%
  CBA	CBAPK	PERLS 14	15/06/2029	2.75%	1.59%	103.54	6.08%
  IAG	IAGPE	Capital Notes 2	15/06/2029	3.50%	1.92%	104.90	6.72%
  Macquarie Group	MQGPF	Capital Notes 6	12/09/2029	3.70%	1.54%	107.00	6.77%
  Nat Aust Bank	NABPI	Capital Notes 6	17/09/2029	3.15%	1.50%	105.34	6.35%
  Westpac	WBCPK	Capital Notes 8	21/09/2029	2.90%	1.45%	104.74	6.15%
  ANZ Bank	AN3PK	Capital Notes 8	20/03/2030	2.75%	1.65%	104.00	6.06%
  CBA	CBAPM	PERLS 16	17/06/2030	3.00%	1.43%	105.92	6.18%
  Suncorp	SUNPJ	Capital Notes 5	17/06/2030	2.80%	1.86%	103.51	6.13%
  Nat Aust Bank	NABPJ	Capital Notes 7	17/09/2030	2.80%	1.66%	104.46	6.07%
  Bendigo Bank	BENPi	Capital Notes 2	13/12/2030	3.20%	1.76%	105.85	6.37%
  Insurance Australia	IAGPF	Capital Notes 3	15/12/2030	3.20%	1.96%	105.14	6.42%
  ANZ Bank	AN3PL	Capital Notes 9	20/03/2031	2.90%	1.78%	104.78	6.15%
  Westpac	WBCPM	Capital Notes 10	22/09/2031	3.10%	1.75%	106.14	6.26%
  Macquarie Group	MQGPG	Capital Notes 7	15/12/2031	2.65%	1.99%	103.15	6.01%
  Nat Aust Bank	NABPK	Capital Notes 8	17/03/2032	2.60%	1.62%	104.76	5.87%

• ASX-Listed Hybrids (Non-standard) 16.10.25

  COMPANY	CODE	BOND TYPE	CALL DATE	ISSUE MARGIN (inc frank)	TRADING MARGIN	CLOSING PRICE	RUNNING YIELD
  Nufarm	NFNG	Step Up	Perpetual	3.90%	4.97%	88	8.54%
  Ramsay Health Care	RHCPA	Preference Share	Perpetual	4.85%	4.36%	106.75	7.92%