10 July 2025

Summary:

Hybrid securities continued to trade actively amid a stable interest rate environment and robust bank earnings. Key highlights from the standard and non-standard hybrid securities include:

Standard Bank Hybrids

  • Yields remained elevated, attracting income-focused investors:

    • Average Running Yield hovered around 7.8% to 8.6%.

    • Top yielders include:

      • MBLPC (Macquarie Capital Notes 2): 8.57% yield, 4.70% margin

      • AMPPB (AMP Capital Notes 2): 8.40% yield, 4.50% margin

  • Trading margins showed a tightening trend for several issues:

    • WBCPH (Westpac): Trading margin at 27.74%, up 0.51%

    • Most others showed marginal day-to-day increases between 0.04% to 0.09%

  • Price levels held steady near par:

    • Prices ranged from ~99.97 to 102.47, indicating stable investor confidence.

Non-Standard Hybrids

  • Performance varied depending on structure:

    • Nufarm NFNG (Step Up bond): 9.13% running yield, priced at $87.20.

    • Ramsay RHCPA (Preference Share): Yield at 8.43%, priced at $105.60

  • Both securities showed slight negative daily movements (-0.04% to -0.07%) but remain attractive in yield terms.

 

  • ASX-Listed Hybrids

    COMPANYCODEHYBRID TYPEMATURITY/
    CALL
    DATE    		MARGIN
    INCL. CREDITS    		TRADING
    MARGIN    		DAY
    CHANGE    		DAY
    CLOSE    		RUNNING
    YIELD**
    WestpacWBCPHCapital Notes 522/09/20253.20%27.74%0.51%99.977.28%
    AMP GroupAMPPBCapital Notes 216/12/20254.50%8.51%0.09%1018.40%
    Macquarie BankMBLPCCapital Notes 222/12/20254.70%7.85%0.08%101.0498.57%
    ChallengerCGFPCCapital Notes 325/05/20264.60%5.89%0.04%102.478.44%
    Nat Aust BankNABPFCapital Notes 317/06/20264.00%4.74%0.04%102.0997.81%
    SuncorpSUNPHCapital Notes 317/06/20263.00%4.75%0.04%100.886.86%
    Macquarie GroupMQGPDCapital Notes 410/09/20264.15%4.23%0.03%102.57.91%
    CBACBAPJ PERLS 1320/10/20262.75%3.86%0.03%101.056.59%
    LatitudeLFSPACapital Notes27/10/20264.75%11.97%0.06%96.59.22%
    WestpacWBCPJCapital Notes 722/03/20273.40%4.99%0.03%102.1977.33%
    CBACBAPI PERLS 1220/04/20273.00%3.36%0.02%101.916.79%
    Bank of QueenslandBOQPFCapital Notes 214/05/20273.80%4.51%0.02%102.587.63%
    Bendigo BankBENPHCapital Notes15/06/20273.80%3.99%0.02%102.57.57%
    Macquarie GroupMQGPECapital Notes 520/09/20272.90%3.31%0.02%101.396.70%
    Nat Aust BankNABPHCapital Notes 517/12/20273.50%3.37%0.02%1037.23%
    ANZ BankAN3PICapital Notes 620/03/20283.00%2.92%0.01%102.166.74%
    CBACBAPL PERLS 1515/06/20282.85%3.16%0.02%101.766.65%
    SuncorpSUNPICapital Notes 417/06/20282.90%3.51%0.02%101.056.75%
    WestpacWBCPLCapital Notes 922/09/20283.40%3.79%0.02%103.687.22%
    Macquarie BankMBLPDCapital Notes 37/12/20282.90%2.97%0.01%102.26.66%
    Bank of QueenslandBOQPGCapital Notes 315/12/20283.40%3.47%0.01%102.6017.16%
    Judo CapitalJDOPACapital Notes16/02/20296.50%4.02%0.00%1129.55%
    ANZ BankAN3PJCapital Notes 720/03/20292.70%2.89%0.01%101.396.48%
    ChallengerCGFPDCapital Notes 425/05/20293.60%3.57%0.01%103.57.33%
    CBACBAPK PERLS 1415/06/20292.75%3.00%0.01%101.776.55%
    IAGIAGPECapital Notes 215/06/20293.50%3.88%0.01%1037.32%
    Macquarie GroupMQGPFCapital Notes 612/09/20293.70%2.90%0.01%105.37.25%
    Nat Aust BankNABPICapital Notes 617/09/20293.15%2.83%0.01%103.776.82%
    WestpacWBCPKCapital Notes 821/09/20292.90%3.35%0.02%103.046.74%
    ANZ BankAN3PKCapital Notes 820/03/20302.75%2.80%0.01%101.866.50%
    CBACBAPM PERLS 1617/06/20303.00%2.61%0.01%104.196.64%
    SuncorpSUNPJCapital Notes 517/06/20302.80%3.03%0.01%101.766.60%
    Nat Aust BankNABPJCapital Notes 717/09/20302.80%2.76%0.01%102.8016.53%
    Bendigo BankBENPiCapital Notes 213/12/20303.20%3.22%0.01%102.856.94%
    Insurance AustraliaIAGPFCapital Notes 315/12/20303.20%3.52%0.01%102.77.02%
    ANZ BankAN3PLCapital Notes 920/03/20312.90%2.77%0.01%102.696.60%
    WestpacWBCPMCapital Notes 1022/09/20313.10%3.21%0.01%104.216.87%
    Macquarie GroupMQGPGCapital Notes 715/12/20312.65%2.85%0.01%101.56.44%
    Nat Aust BankNABPKCapital Notes 817/03/20322.60%2.47%0.01%103.266.30%

  • ASX-Listed Hybrids (Non-standard)

    COMPANYCODEBOND TYPECALL DATEISSUE MARGIN (inc frank)TRADING MARGINDAYCLOSING PRICE RUNNING YIELD
    NufarmNFNGStep UpPerpetual3.90%5.36%-0.04%87.29.13%
    Ramsay Health CareRHCPAPreference SharePerpetual4.85%4.66%-0.07%105.68.43%