11 July 2025

Summary:

Australian bank hybrids remained firm over the past week, with continued investor demand driven by attractive running yields and relative stability in pricing. The instruments continue to offer appealing risk-adjusted returns amid steady cash rate expectations.

Key Performance Highlights

  • Major Bank Hybrids (e.g., Westpac, NAB, ANZ, CBA):

    • Running Yields mostly ranged from 7.0% to 8.8%, offering a competitive return versus term deposits or government bonds.

    • Trading Margins varied more widely, with a few securities showing elevated spreads >25% (e.g., WBCPH at 28.25%), possibly reflecting approaching call dates or lower liquidity.

    • Price Movement: Most hybrid prices remained relatively stable, with daily changes ranging from flat to minor gains (e.g., +0.51% for WBCPH).

  • Subordinated or Tier 2 Hybrids such as AMP, Macquarie, and Challenger hybrids saw yields in the 8.0%–8.6% range, with tighter trading margins indicating stronger market confidence or proximity to call dates.

Yield & Margin Trends

  • Highest Running Yields among bank hybrids were observed in:

    • MBLPC (Macquarie Bank) – 8.55%

    • AMPPB (AMP Group) – 8.37%

    • CGFPC (Challenger) – 8.42%

  • Elevated Trading Margins:

    • Westpac’s WBCPH stood out with a 28.25% margin, though this may reflect technical pricing or specific call characteristics rather than actual risk premium.

Non-Standard Hybrid Instruments

  • Perpetuals like Nufarm (NFNG) and Ramsay (RHCPA) continued to offer high yields (~9.1% and 8.4%).

  • These are not bank-issued but highlight broader demand for yield across the hybrid market spectrum.

major bank

 

other financials ex majors

  • ASX-Listed Hybrids

    COMPANYCODEHYBRID TYPEMATURITY/
    CALL
    DATE    		MARGIN
    INCL. CREDITS    		TRADING
    MARGIN    		DAY
    CHANGE    		DAY
    CLOSE    		RUNNING
    YIELD**
    WestpacWBCPHCapital Notes 522/09/20253.20%28.25%0.51%99.977.25%
    AMP GroupAMPPBCapital Notes 216/12/20254.50%8.59%0.08%1018.37%
    Macquarie BankMBLPCCapital Notes 222/12/20254.70%7.92%0.07%101.0498.55%
    ChallengerCGFPCCapital Notes 325/05/20264.60%5.93%0.03%102.478.42%
    Nat Aust BankNABPFCapital Notes 317/06/20264.00%4.77%0.03%102.0997.78%
    SuncorpSUNPHCapital Notes 317/06/20263.00%4.78%0.03%100.886.84%
    Macquarie GroupMQGPDCapital Notes 410/09/20264.15%4.25%0.02%102.57.89%
    CBACBAPJ PERLS 1320/10/20262.75%3.88%0.02%101.056.57%
    LatitudeLFSPACapital Notes27/10/20264.75%12.00%0.04%96.59.19%
    WestpacWBCPJCapital Notes 722/03/20273.40%5.01%0.02%102.1977.30%
    CBACBAPI PERLS 1220/04/20273.00%3.37%0.01%101.916.77%
    Bank of QueenslandBOQPFCapital Notes 214/05/20273.80%4.52%0.01%102.587.61%
    Bendigo BankBENPHCapital Notes15/06/20273.80%4.00%0.01%102.57.55%
    Macquarie GroupMQGPECapital Notes 520/09/20272.90%3.32%0.01%101.396.68%
    Nat Aust BankNABPHCapital Notes 517/12/20273.50%3.38%0.01%1037.20%
    ANZ BankAN3PICapital Notes 620/03/20283.00%2.93%0.01%102.166.71%
    CBACBAPL PERLS 1515/06/20282.85%3.17%0.01%101.766.62%
    SuncorpSUNPICapital Notes 417/06/20282.90%3.52%0.01%101.056.72%
    WestpacWBCPLCapital Notes 922/09/20283.40%3.80%0.01%103.687.19%
    Macquarie BankMBLPDCapital Notes 37/12/20282.90%2.98%0.01%102.26.63%
    Bank of QueenslandBOQPGCapital Notes 315/12/20283.40%3.48%0.01%102.6017.13%
    Judo CapitalJDOPACapital Notes16/02/20296.50%4.03%0.01%1129.53%
    ANZ BankAN3PJCapital Notes 720/03/20292.70%2.90%0.00%101.396.46%
    ChallengerCGFPDCapital Notes 425/05/20293.60%3.57%0.01%103.57.31%
    CBACBAPK PERLS 1415/06/20292.75%3.01%0.01%101.776.52%
    IAGIAGPECapital Notes 215/06/20293.50%3.89%0.01%1037.30%
    Macquarie GroupMQGPFCapital Notes 612/09/20293.70%2.91%0.01%105.37.22%
    Nat Aust BankNABPICapital Notes 617/09/20293.15%2.84%0.01%103.776.80%
    WestpacWBCPKCapital Notes 821/09/20292.90%3.35%0.01%103.046.72%
    ANZ BankAN3PKCapital Notes 820/03/20302.75%2.80%0.00%101.866.48%
    CBACBAPM PERLS 1617/06/20303.00%2.61%0.00%104.196.62%
    SuncorpSUNPJCapital Notes 517/06/20302.80%3.04%0.00%101.766.57%
    Nat Aust BankNABPJCapital Notes 717/09/20302.80%2.77%0.00%102.8016.51%
    Bendigo BankBENPiCapital Notes 213/12/20303.20%3.22%0.00%102.856.91%
    Insurance AustraliaIAGPFCapital Notes 315/12/20303.20%3.52%0.00%102.77.00%
    ANZ BankAN3PLCapital Notes 920/03/20312.90%2.77%0.00%102.696.58%
    WestpacWBCPMCapital Notes 1022/09/20313.10%3.22%0.00%104.216.84%
    Macquarie GroupMQGPGCapital Notes 715/12/20312.65%2.85%0.00%101.56.42%
    Nat Aust BankNABPKCapital Notes 817/03/20322.60%2.47%0.00%103.266.27%

  • ASX-Listed Hybrids (Non-standard)

    COMPANYCODEBOND TYPECALL DATEISSUE MARGIN (inc frank)TRADING MARGINDAYCLOSING PRICE RUNNING YIELD
    NufarmNFNGStep UpPerpetual3.90%5.33%-0.03%87.29.07%
    Ramsay Health CareRHCPAPreference SharePerpetual4.85%4.64%-0.02%105.68.39%