01 October 2025

Summary –

The hybrid securities market continues to offer attractive income opportunities for investors, with yields remaining well above benchmark rates.

  • Average Trading Margin: 4.42%
  • Average Running Yield: 7.06%

Top Performers

  • Highest Trading Margin: Latitude (LFSPA) at 14.17%
  • Highest Running Yield: Judo Capital (JDOPA) at 9.60%

Bottom Performers

  • Lowest Trading Margin: National Australia Bank (NABPK) at 2.59%
  • Lowest Running Yield: National Australia Bank (NABPK) at 6.15%

Major Banks

The scatter plot for major banks shows a tight clustering of securities with call dates between 2026 and 2032, and margins to BBSW generally ranging from 2.5% to 3.5%. This reflects:

  • A compressed spread environment, typical of high-credit-quality issuers.
  • Longer-dated hybrids tend to offer slightly lower margins, consistent with reduced reinvestment risk and investor preference for duration certainty.
  • Securities such as CBAPK, AN3PL, and NABPK are positioned toward the lower end of the margin spectrum, reinforcing their lower-risk profile.

Other Financials (Ex Majors)

The scatter plot for other financials reveals a broader spread range, with margins to BBSW extending from 0.75% to 4.00%:

  • Instruments like BOQPF, IAGPF, BENPI, and MQGPG offer higher margins, indicating either higher perceived risk or greater yield incentives.
  • The wider dispersion suggests greater diversity in credit profiles and investor appetite for yield among non-major issuers.
  • Notably, SUNPJ and MQGPF sit in the mid-range, balancing yield and credit quality.
Hybrids- major banks hybrids - other financial ex majors

 

 

  • COMPANYCODEHYBRID TYPEMATURITY/
    CALL
    DATE    		MARGIN
    INCL. CREDITS    		TRADING
    MARGIN    		DAY
    CHANGE    		DAY
    CLOSE    		RUNNING
    YIELD**
    ChallengerCGFPCCapital Notes 325-05-20264.60%9.47%0.06%102.668.41%
    Nat Aust BankNABPFCapital Notes 317-06-20264.00%8.44%0.05%101.77.79%
    SuncorpSUNPHCapital Notes 317-06-20263.00%8.09%0.05%100.726.80%
    Macquarie GroupMQGPDCapital Notes 410-09-20264.15%6.35%0.03%102.37.86%
    CBACBAPJ PERLS 1320-10-20262.75%5.80%0.03%1016.51%
    LatitudeLFSPACapital Notes27-10-20264.75%14.17%0.05%97.99.08%
    WestpacWBCPJCapital Notes 722-03-20273.40%6.38%0.02%102.57.24%
    CBACBAPI PERLS 1220-04-20273.00%4.34%0.02%102.256.69%
    Bank of QueenslandBOQPFCapital Notes 214-05-20273.80%5.18%0.02%103.737.51%
    Bendigo BankBENPHCapital Notes15-06-20273.80%4.71%0.02%103.277.46%
    Macquarie GroupMQGPECapital Notes 520-09-20272.90%3.57%0.01%102.46.54%
    Nat Aust BankNABPHCapital Notes 517-12-20273.50%4.06%0.01%103.47.14%
    ANZ BankAN3PICapital Notes 620-03-20283.00%3.21%0.01%102.796.59%
    CBACBAPL PERLS 1515-06-20282.85%3.51%0.01%102.626.51%
    SuncorpSUNPICapital Notes 417-06-20282.90%3.32%0.01%103.196.52%
    WestpacWBCPLCapital Notes 922-09-20283.40%4.11%0.01%104.757.08%
    Macquarie BankMBLPDCapital Notes 307-12-20282.90%3.26%0.01%102.86.52%
    Bank of QueenslandBOQPGCapital Notes 315-12-20283.40%3.53%0.01%104.26.98%
    Judo CapitalJDOPACapital Notes16-02-20296.50%4.84%0.01%1129.60%
    ANZ BankAN3PJCapital Notes 720-03-20292.70%2.65%0.00%103.36.25%
    ChallengerCGFPDCapital Notes 425-05-20293.60%3.80%0.01%104.637.19%
    CBACBAPK PERLS 1415-06-20292.75%3.03%0.01%103.36.36%
    IAGIAGPECapital Notes 215-06-20293.50%3.79%0.01%104.87.11%
    Macquarie GroupMQGPFCapital Notes 612-09-20293.70%2.98%0.01%106.497.09%
    Nat Aust BankNABPICapital Notes 617-09-20293.15%2.77%0.01%105.5996.62%
    WestpacWBCPKCapital Notes 821-09-20292.90%3.73%0.01%103.66.63%
    ANZ BankAN3PKCapital Notes 820-03-20302.75%2.69%0.00%103.4536.29%
    CBACBAPM PERLS 1617-06-20303.00%2.65%0.01%105.66.47%
    SuncorpSUNPJCapital Notes 517-06-20302.80%2.83%0.00%104.076.36%
    Nat Aust BankNABPJCapital Notes 717-09-20302.80%2.85%0.00%104.056.36%
    Bendigo BankBENPiCapital Notes 213-12-20303.20%3.22%0.00%104.56.75%
    Insurance AustraliaIAGPFCapital Notes 315-12-20303.20%3.37%0.00%104.666.79%
    ANZ BankAN3PLCapital Notes 920-03-20312.90%2.74%0.00%104.0286.41%
    WestpacWBCPMCapital Notes 1022-09-20313.10%3.28%0.00%105.656.70%
    Macquarie GroupMQGPGCapital Notes 715-12-20312.65%2.73%0.00%103.46.22%
    Nat Aust BankNABPKCapital Notes 817-03-20322.60%2.59%0.00%104.26.15%
  • COMPANYCODEBOND TYPECALL DATEISSUE MARGIN (inc frank)TRADING MARGIN?DAYCLOSING PRICE RUNNING YIELD
    NufarmNFNGStep UpPerpetual3.90%5.25%-0.01%90.58.83%
    Ramsay Health CareRHCPAPreference SharePerpetual4.85%4.66%0.00%108.6398.23%