10 September 2025

Summary –

The scatter plot titled “MAJOR BANKS” highlights a tight clustering of securities around the 3.00% margin-to-BBSW mark, with call dates extending into late 2029. Notable performers include:

  • CBAPL (CBA PERLS 15) and WBCPK (Westpac Capital Notes 8), both trading with margins near 3.00% and call dates in mid-to-late 2029.
  • NABPI (NAB Capital Notes 6) and AN3PK (ANZ Capital Notes 8) also show consistent pricing, reinforcing investor confidence in Tier 1 bank issuers.

From the table, Westpac’s WBCPH stands out with a trading margin of 388.48%—an anomaly likely driven by technical factors or data irregularities. Excluding this, most major bank hybrids are trading between 2.4% and 4.0%, with running yields in the 6.2% to 7.1% range.

Other Financials (Ex-Majors)

The “OTHER FINANCIALS EX MAJORS” chart reveals a wider spread in margins, with several instruments offering above 3.5% margin to BBSW, reflecting higher perceived risk or longer duration.

  • JDOPA (Judo Capital) leads the pack with a 6.50% margin and a 9.55% running yield, underscoring its appeal to yield-focused investors.
  • BOQPF, IAGPE, and MQGPF also offer attractive spreads, trading in the 3.4% to 3.7% margin range.

These instruments provide diversification beyond the Big Four, with slightly elevated yields compensating for issuer-specific risks.

Market Trends & Investor Takeaways

  • Yield compression among major bank hybrids suggests strong demand and low credit concerns.
  • Non-major financials continue to offer premium margins, ideal for investors seeking enhanced income with manageable risk.
  • Call date clustering around 2028–2030 reflects issuer preference for medium-term refinancing windows.

As always, investors should weigh margin spreads against credit quality, call risk, and market liquidity. The hybrid market remains a dynamic space for income generation, especially as traditional fixed-income yields remain subdued.

 

 

 

  • ASX-Listed Hybrids

    COMPANYCODEHYBRID TYPEMATURITY/
    CALL
    DATE    		MARGIN
    INCL. CREDITS    		TRADING
    MARGIN    		DAY
    CHANGE    		DAY
    CLOSE    		RUNNING
    YIELD**
    WestpacWBCPHCapital Notes 522-09-20253.20%388.48%58.14%100.527.14%
    AMP GroupAMPPBCapital Notes 216-12-20254.50%16.88%0.23%1018.33%
    Macquarie BankMBLPCCapital Notes 222-12-20254.70%16.86%0.21%100.538.54%
    ChallengerCGFPCCapital Notes 325-05-20264.60%8.51%0.05%102.58.38%
    Nat Aust BankNABPFCapital Notes 317-06-20264.00%7.17%0.04%101.887.75%
    SuncorpSUNPHCapital Notes 317-06-20263.00%6.68%0.04%101.016.75%
    Macquarie GroupMQGPDCapital Notes 410-09-20264.15%5.50%0.03%102.557.82%
    CBACBAPJ PERLS 1320-10-20262.75%5.14%0.03%101.16.48%
    LatitudeLFSPACapital Notes27-10-20264.75%11.91%0.04%98.988.93%
    WestpacWBCPJCapital Notes 722-03-20273.40%4.83%0.02%103.957.11%
    CBACBAPI PERLS 1220-04-20273.00%4.04%0.02%102.26.67%
    Bank of QueenslandBOQPFCapital Notes 214-05-20273.80%5.01%0.02%103.417.50%
    Bendigo BankBENPHCapital Notes15-06-20273.80%4.69%0.02%102.817.47%
    Macquarie GroupMQGPECapital Notes 520-09-20272.90%3.54%0.01%102.076.54%
    Nat Aust BankNABPHCapital Notes 517-12-20273.50%3.98%0.01%103.17.13%
    ANZ BankAN3PICapital Notes 620-03-20283.00%2.43%0.01%104.156.49%
    CBACBAPL PERLS 1515-06-20282.85%3.24%0.01%102.816.47%
    SuncorpSUNPICapital Notes 417-06-20282.90%3.22%0.01%102.996.51%
    WestpacWBCPLCapital Notes 922-09-20283.40%3.57%0.01%105.616.99%
    Macquarie BankMBLPDCapital Notes 307-12-20282.90%3.27%0.01%102.436.53%
    Bank of QueenslandBOQPGCapital Notes 315-12-20283.40%3.48%0.01%103.876.97%
    Judo CapitalJDOPACapital Notes16-02-20296.50%4.62%0.01%112.019.55%
    ANZ BankAN3PJCapital Notes 720-03-20292.70%2.42%0.00%103.656.21%
    ChallengerCGFPDCapital Notes 425-05-20293.60%3.76%0.01%104.287.19%
    CBACBAPK PERLS 1415-06-20292.75%2.96%0.01%103.16.35%
    IAGIAGPECapital Notes 215-06-20293.50%3.63%0.01%104.897.08%
    Macquarie GroupMQGPFCapital Notes 612-09-20293.70%3.08%0.01%105.87.11%
    Nat Aust BankNABPICapital Notes 617-09-20293.15%2.97%0.01%104.556.67%
    WestpacWBCPKCapital Notes 821-09-20292.90%3.08%0.01%105.196.50%
    ANZ BankAN3PKCapital Notes 820-03-20302.75%2.38%0.00%104.256.23%
    CBACBAPM PERLS 1617-06-20303.00%2.55%0.01%105.586.45%
    SuncorpSUNPJCapital Notes 517-06-20302.80%2.82%0.01%103.726.36%
    Nat Aust BankNABPJCapital Notes 717-09-20302.80%2.70%0.01%104.26.33%
    Bendigo BankBENPiCapital Notes 213-12-20303.20%3.14%0.01%104.46.74%
    Insurance AustraliaIAGPFCapital Notes 315-12-20303.20%3.29%0.00%104.626.77%
    ANZ BankAN3PLCapital Notes 920-03-20312.90%2.26%0.00%105.716.29%
    WestpacWBCPMCapital Notes 1022-09-20313.10%2.94%0.00%106.656.61%
    Macquarie GroupMQGPGCapital Notes 715-12-20312.65%2.89%0.00%102.316.27%
    Nat Aust BankNABPKCapital Notes 817-03-20322.60%2.55%0.00%103.986.14%

  • ASX-Listed Hybrids (Non-standard)

    COMPANYCODEBOND TYPECALL DATEISSUE MARGIN (inc frank)TRADING MARGINDAYCLOSING PRICE RUNNING YIELD
    NufarmNFNGStep UpPerpetual3.90%5.21%0.00%89.88.79%
    Ramsay Health CareRHCPAPreference SharePerpetual4.85%4.53%0.00%108.998.11%