14 July 2025

Summary:

The hybrid securities market remains a dynamic space for income-seeking investors, with issuer-specific trends offering valuable clues about risk appetite, pricing behavior, and regulatory impact.

Among bank-issued hybrids, Judo Capital continues to command attention with its high running yield of 9.52%, supported by strong demand and premium pricing. Its relatively short call horizon and elevated issue margin reflect both investor confidence and the need for yield in a low-volatility environment.

Latitude’s LFSPA, while offering a similarly high yield of 9.19%, trades at a discount and carries a substantial 12.12% trading margin—a signal that investors are pricing in higher risk or uncertainty around its credit profile. This divergence from major bank hybrids highlights the market’s nuanced view of issuer strength and structure.

The big four banks—CBA, ANZ, NAB, and Westpac—continue to anchor the hybrid landscape with consistent yields around 6.4% to 7.3%, depending on call dates and franking benefits. These instruments are favored for their stability and liquidity, though recent data shows slight yield compression as longer-dated hybrids dominate new issuance.

Westpac’s WBCPH, with a trading margin nearing 30%, stands out due to its imminent call date in September 2025. This uplift reflects the typical yield spike seen as hybrids approach maturity, offering tactical opportunities for short-term investors.

Outside the banking sector, corporate hybrids are gaining traction. Nufarm’s NFNG and Ramsay Health Care’s RHCPA, both perpetual instruments, offer running yields of 9.05% and 8.37% respectively. These securities appeal to investors seeking diversification, though their perpetual nature and structural complexity require careful consideration.

Looking ahead, APRA’s decision to phase out bank hybrids by 2032 is reshaping issuer behavior. Banks are expected to pivot toward Tier 2 capital instruments, such as subordinated debt, which offer lower yields but rank higher in the capital structure. This shift will gradually reduce the supply of traditional hybrids, prompting investors to reassess their income strategies.

For now, the hybrid market remains a fertile ground for yield, with issuer-specific analysis offering critical insights into pricing, risk, and opportunity. YieldReport will continue to track these developments, helping investors navigate the evolving landscape with clarity and confidence.

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  • ASX-Listed Hybrids

    COMPANYCODEHYBRID TYPEMATURITY/
    CALL
    DATE    		MARGIN
    INCL. CREDITS    		TRADING
    MARGIN    		DAY
    CHANGE    		DAY
    CLOSE    		RUNNING
    YIELD**
    WestpacWBCPHCapital Notes 522/09/20253.20%29.87%1.62%99.977.24%
    AMP GroupAMPPBCapital Notes 216/12/20254.50%8.84%0.25%1018.36%
    Macquarie BankMBLPCCapital Notes 222/12/20254.70%8.13%0.21%101.0498.54%
    ChallengerCGFPCCapital Notes 325/05/20264.60%6.03%0.10%102.478.41%
    Nat Aust BankNABPFCapital Notes 317/06/20264.00%4.85%0.08%102.0997.77%
    SuncorpSUNPHCapital Notes 317/06/20263.00%4.87%0.08%100.886.83%
    Macquarie GroupMQGPDCapital Notes 410/09/20264.15%4.30%0.06%102.57.87%
    CBACBAPJ PERLS 1320/10/20262.75%3.94%0.06%101.056.56%
    LatitudeLFSPACapital Notes27/10/20264.75%12.12%0.12%96.59.19%
    WestpacWBCPJCapital Notes 722/03/20273.40%5.06%0.05%102.1977.29%
    CBACBAPI PERLS 1220/04/20273.00%3.41%0.04%101.916.76%
    Bank of QueenslandBOQPFCapital Notes 214/05/20273.80%4.57%0.05%102.587.60%
    Bendigo BankBENPHCapital Notes15/06/20273.80%4.04%0.04%102.57.54%
    Macquarie GroupMQGPECapital Notes 520/09/20272.90%3.35%0.03%101.396.67%
    Nat Aust BankNABPHCapital Notes 517/12/20273.50%3.41%0.03%1037.19%
    ANZ BankAN3PICapital Notes 620/03/20283.00%2.95%0.02%102.166.70%
    CBACBAPL PERLS 1515/06/20282.85%3.19%0.02%101.766.61%
    SuncorpSUNPICapital Notes 417/06/20282.90%3.55%0.03%101.056.71%
    WestpacWBCPLCapital Notes 922/09/20283.40%3.83%0.03%103.687.18%
    Macquarie BankMBLPDCapital Notes 37/12/20282.90%2.99%0.02%102.26.62%
    Bank of QueenslandBOQPGCapital Notes 315/12/20283.40%3.50%0.02%102.6017.12%
    Judo CapitalJDOPACapital Notes16/02/20296.50%4.06%0.03%1129.52%
    ANZ BankAN3PJCapital Notes 720/03/20292.70%2.91%0.01%101.396.45%
    ChallengerCGFPDCapital Notes 425/05/20293.60%3.59%0.02%103.57.29%
    CBACBAPK PERLS 1415/06/20292.75%3.03%0.02%101.776.51%
    IAGIAGPECapital Notes 215/06/20293.50%3.91%0.02%1037.29%
    Macquarie GroupMQGPFCapital Notes 612/09/20293.70%2.92%0.02%105.37.21%
    Nat Aust BankNABPICapital Notes 617/09/20293.15%2.86%0.02%103.776.78%
    WestpacWBCPKCapital Notes 821/09/20292.90%3.37%0.02%103.046.70%
    ANZ BankAN3PKCapital Notes 820/03/20302.75%2.82%0.01%101.866.47%
    CBACBAPM PERLS 1617/06/20303.00%2.63%0.02%104.196.61%
    SuncorpSUNPJCapital Notes 517/06/20302.80%3.05%0.02%101.766.56%
    Nat Aust BankNABPJCapital Notes 717/09/20302.80%2.78%0.01%102.8016.49%
    Bendigo BankBENPiCapital Notes 213/12/20303.20%3.24%0.02%102.856.90%
    Insurance AustraliaIAGPFCapital Notes 315/12/20303.20%3.53%0.01%102.76.98%
    ANZ BankAN3PLCapital Notes 920/03/20312.90%2.78%0.01%102.696.56%
    WestpacWBCPMCapital Notes 1022/09/20313.10%3.23%0.01%104.216.83%
    Macquarie GroupMQGPGCapital Notes 715/12/20312.65%2.86%0.01%101.56.41%
    Nat Aust BankNABPKCapital Notes 817/03/20322.60%2.48%0.01%103.266.26%

  • ASX-Listed Hybrids (Non-standard)

    COMPANYCODEBOND TYPECALL DATEISSUE MARGIN (inc frank)TRADING MARGINDAYCLOSING PRICE RUNNING YIELD
    NufarmNFNGStep UpPerpetual3.90%5.33%-0.01%87.29.05%
    Ramsay Health CareRHCPAPreference SharePerpetual4.85%4.64%0.00%105.68.37%