1 September 2025

Summary –

Hybrid securities finished the first week of September on a mixed note, with trading margins and yields showing divergent moves across the sector. The overall tone was steady, but several notable shifts occurred among major bank issues and higher-yielding non-bank names.

Major Banks:
Among the big four, trading margins generally remained contained in the 2.3%–3.5% range, keeping running yields clustered between 6.0% and 7.0%.

• Commonwealth Bank’s PERLS 13 (CBAPJ) edged slightly higher, closing at $102.93 with a running yield of 6.33%.

• Westpac’s Capital Notes 9 (WBCPL) traded firmer at $105.35, offering 6.97%, while its shorter-dated Capital Notes 5 (WBCPH) showed a distorted margin of 142%, reflecting the approaching September 22 call date.

• NAB Capital Notes 5 (NABPH) offered 6.98%, largely steady on the week.

• ANZ Capital Notes 6 (AN3PI) eased to 6.46%.

Regionals and Others:
Regional banks and smaller financials remained under pressure, with investors still demanding a higher premium.

• BOQ Capital Notes 2 (BOQPF) slipped, now yielding 7.42%, while Bendigo’s BENPH closed at 7.29%.

• Suncorp Capital Notes 3 (SUNPH) remained softer at 6.65%.

Non-Bank Issuers:
As has been the case for much of 2025, non-bank hybrids led the market in yield terms.

• Judo Capital’s JDOPA stood out with a running yield of 9.50%, holding its place as the highest-yielding listed hybrid.

• Latitude’s LFSPA followed closely at 8.95%, while AMP’s AMPPB offered 8.18%.

• Challenger’s CGFPC and CGFPD were both trading around 8.3%–7.2%, underlining the consistently higher risk premium demanded outside the major banks.

Other Notes:

• Insurance names IAG (IAGPE, IAGPF) continued to offer solid yields around 6.7%, broadly in line with their sector peers.

• Perpetual-style securities such as Nufarm NFNG and Ramsay RHCPA also traded at elevated yields of 8–9%, reflecting their subordination and structural risks.

 

• ASX-Listed Hybrids

  COMPANY	CODE	HYBRID TYPE	MATURITY/ CALL DATE	MARGIN INCL. CREDITS	TRADING MARGIN	DAY CHANGE	DAY CLOSE	RUNNING YIELD**
  Westpac	WBCPH	Capital Notes 5	22/09/2025	3.20%	142.49%	25.17%	100.5	7.11%
  AMP Group	AMPPB	Capital Notes 2	16/12/2025	4.50%	9.75%	-0.20%	102.36	8.18%
  Macquarie Bank	MBLPC	Capital Notes 2	22/12/2025	4.70%	8.36%	-1.24%	102.4	8.35%
  Challenger	CGFPC	Capital Notes 3	25/05/2026	4.60%	8.82%	-0.37%	102	8.39%
  Nat Aust Bank	NABPF	Capital Notes 3	17/06/2026	4.00%	4.85%	-0.16%	103.291	7.60%
  Suncorp	SUNPH	Capital Notes 3	17/06/2026	3.00%	4.80%	-0.25%	102.11	6.65%
  Macquarie Group	MQGPD	Capital Notes 4	10/09/2026	4.15%	5.01%	1.22%	102.8	7.76%
  CBA	CBAPJ	PERLS 13	20/10/2026	2.75%	3.15%	0.05%	102.93	6.33%
  Latitude	LFSPA	Capital Notes	27/10/2026	4.75%	12.25%	0.12%	98.31	8.95%
  Westpac	WBCPJ	Capital Notes 7	22/03/2027	3.40%	4.81%	-0.01%	103.75	7.09%
  CBA	CBAPI	PERLS 12	20/04/2027	3.00%	3.21%	-0.01%	103.21	6.57%
  Bank of Queensland	BOQPF	Capital Notes 2	14/05/2027	3.80%	4.49%	-0.59%	103.94	7.42%
  Bendigo Bank	BENPH	Capital Notes	15/06/2027	3.80%	3.28%	-0.18%	104.8	7.29%
  Macquarie Group	MQGPE	Capital Notes 5	20/09/2027	2.90%	2.61%	-0.30%	103.58	6.42%
  Nat Aust Bank	NABPH	Capital Notes 5	17/12/2027	3.50%	3.00%	0.02%	104.83	6.98%
  ANZ Bank	AN3PI	Capital Notes 6	20/03/2028	3.00%	2.42%	-0.04%	104.05	6.46%
  CBA	CBAPL	PERLS 15	15/06/2028	2.85%	2.63%	-0.03%	104.05	6.36%
  Suncorp	SUNPI	Capital Notes 4	17/06/2028	2.90%	2.67%	-0.48%	104.1	6.41%
  Westpac	WBCPL	Capital Notes 9	22/09/2028	3.40%	3.59%	0.02%	105.351	6.97%
  Macquarie Bank	MBLPD	Capital Notes 3	7/12/2028	2.90%	2.52%	-0.04%	104.3	6.38%
  Bank of Queensland	BOQPG	Capital Notes 3	15/12/2028	3.40%	3.18%	0.13%	104.49	6.90%
  Judo Capital	JDOPA	Capital Notes	16/02/2029	6.50%	4.50%	-0.26%	112.09	9.50%
  ANZ Bank	AN3PJ	Capital Notes 7	20/03/2029	2.70%	2.36%	-0.09%	103.72	6.18%
  Challenger	CGFPD	Capital Notes 4	25/05/2029	3.60%	3.80%	0.30%	103.95	7.18%
  CBA	CBAPK	PERLS 14	15/06/2029	2.75%	2.47%	-0.05%	104.41	6.24%
  IAG	IAGPE	Capital Notes 2	15/06/2029	3.50%	2.71%	-0.51%	107.5	6.87%
  Macquarie Group	MQGPF	Capital Notes 6	12/09/2029	3.70%	2.94%	0.34%	106.1	7.06%
  Nat Aust Bank	NABPI	Capital Notes 6	17/09/2029	3.15%	2.59%	0.18%	105.6	6.57%
  Westpac	WBCPK	Capital Notes 8	21/09/2029	2.90%	3.31%	0.13%	104.26	6.53%
  ANZ Bank	AN3PK	Capital Notes 8	20/03/2030	2.75%	2.30%	-0.11%	104.39	6.19%
  CBA	CBAPM	PERLS 16	17/06/2030	3.00%	2.42%	-0.02%	105.9	6.40%
  Suncorp	SUNPJ	Capital Notes 5	17/06/2030	2.80%	2.52%	-0.27%	104.65	6.27%
  Nat Aust Bank	NABPJ	Capital Notes 7	17/09/2030	2.80%	2.50%	-0.03%	104.8	6.27%
  Bendigo Bank	BENPi	Capital Notes 2	13/12/2030	3.20%	2.66%	-0.18%	106.1	6.59%
  Insurance Australia	IAGPF	Capital Notes 3	15/12/2030	3.20%	2.93%	-0.12%	105.86	6.66%
  ANZ Bank	AN3PL	Capital Notes 9	20/03/2031	2.90%	2.31%	-0.07%	105.35	6.28%
  Westpac	WBCPM	Capital Notes 10	22/09/2031	3.10%	2.89%	0.01%	106.7	6.57%
  Macquarie Group	MQGPG	Capital Notes 7	15/12/2031	2.65%	2.66%	0.01%	103.21	6.19%
  Nat Aust Bank	NABPK	Capital Notes 8	17/03/2032	2.60%	2.41%	0.09%	104.47	6.08%

• ASX-Listed Hybrids (Non-standard)

  COMPANY	CODE	BOND TYPE	CALL DATE	ISSUE MARGIN (inc frank)	TRADING MARGIN	DAY	CLOSING PRICE	RUNNING YIELD
  Nufarm	NFNG	Step Up	Perpetual	3.90%	5.33%	0.16%	88.2	8.90%
  Ramsay Health Care	RHCPA	Preference Share	Perpetual	4.85%	4.57%	0.01%	108.01	8.14%