15 August 2025

Summary –

The Australian bank hybrid market saw a notable divergence in performance this week, with several securities delivering standout results. Westpac’s Capital Notes 5 (WBCPH) surged with a remarkable trading margin of 61.18%, driven by strong investor demand and nearing its call date in September. Latitude’s Capital Notes (LFSPA) also impressed, posting a trading margin of 11.29% and a running yield of 8.94%, reflecting its appeal among yield-focused investors.

The highest running yield was recorded by Judo Capital Notes (JDOPA) at 9.47%, underscoring the premium investors are placing on newer, higher-margin instruments. On the price movement front, WBCPH led with a daily gain of 1.84%, followed by LFSPA at 1.38%, and Bendigo Bank’s BENPH at 0.49%, indicating positive sentiment across select names. Despite these highs, the broader market remained stable, with the average trading margin at 5.10% and average running yield at 6.97%, suggesting hybrids continue to offer attractive income opportunities amid a low-rate environment.

Investors are advised to monitor margin compression trends and upcoming call dates closely as they recalibrate portfolios for yield and risk.

• 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%	61.18%	1.84%	100.401	7.14%
  AMP Group	AMPPB	Capital Notes 2	16/12/2025	4.50%	7.83%	-0.63%	102.36	8.20%
  Macquarie Bank	MBLPC	Capital Notes 2	22/12/2025	4.70%	6.87%	-0.04%	102.39	8.37%
  Challenger	CGFPC	Capital Notes 3	25/05/2026	4.60%	7.39%	-0.04%	102.4	8.37%
  Nat Aust Bank	NABPF	Capital Notes 3	17/06/2026	4.00%	4.37%	-0.23%	103.25	7.63%
  Suncorp	SUNPH	Capital Notes 3	17/06/2026	3.00%	4.67%	0.22%	101.8	6.69%
  Macquarie Group	MQGPD	Capital Notes 4	10/09/2026	4.15%	3.73%	-0.24%	103.7	7.72%
  CBA	CBAPJ	PERLS 13	20/10/2026	2.75%	3.21%	-0.12%	102.53	6.39%
  Latitude	LFSPA	Capital Notes	27/10/2026	4.75%	11.29%	1.38%	98.54	8.94%
  Westpac	WBCPJ	Capital Notes 7	22/03/2027	3.40%	4.76%	0.08%	103.41	7.14%
  CBA	CBAPI	PERLS 12	20/04/2027	3.00%	3.16%	0.18%	102.95	6.62%
  Bank of Queensland	BOQPF	Capital Notes 2	14/05/2027	3.80%	4.80%	-0.01%	103.04	7.51%
  Bendigo Bank	BENPH	Capital Notes	15/06/2027	3.80%	3.31%	0.49%	104.4	7.34%
  Macquarie Group	MQGPE	Capital Notes 5	20/09/2027	2.90%	2.61%	0.13%	103.3	6.47%
  Nat Aust Bank	NABPH	Capital Notes 5	17/12/2027	3.50%	2.96%	0.00%	104.56	7.02%
  ANZ Bank	AN3PI	Capital Notes 6	20/03/2028	3.00%	2.54%	0.06%	103.53	6.53%
  CBA	CBAPL	PERLS 15	15/06/2028	2.85%	2.58%	-0.04%	103.85	6.40%
  Suncorp	SUNPI	Capital Notes 4	17/06/2028	2.90%	2.93%	-0.13%	103.16	6.50%
  Westpac	WBCPL	Capital Notes 9	22/09/2028	3.40%	3.62%	0.21%	104.901	7.03%
  Macquarie Bank	MBLPD	Capital Notes 3	7/12/2028	2.90%	2.57%	-0.05%	103.89	6.43%
  Bank of Queensland	BOQPG	Capital Notes 3	15/12/2028	3.40%	2.74%	0.08%	105.36	6.86%
  Judo Capital	JDOPA	Capital Notes	16/02/2029	6.50%	4.25%	-0.25%	112.34	9.47%
  ANZ Bank	AN3PJ	Capital Notes 7	20/03/2029	2.70%	2.46%	0.06%	103.17	6.25%
  Challenger	CGFPD	Capital Notes 4	25/05/2029	3.60%	3.41%	0.03%	104.72	7.15%
  CBA	CBAPK	PERLS 14	15/06/2029	2.75%	2.41%	-0.15%	104.29	6.28%
  IAG	IAGPE	Capital Notes 2	15/06/2029	3.50%	3.20%	-0.06%	105.7	7.02%
  Macquarie Group	MQGPF	Capital Notes 6	12/09/2029	3.70%	2.62%	-0.01%	106.85	7.04%
  Nat Aust Bank	NABPI	Capital Notes 6	17/09/2029	3.15%	2.60%	0.04%	105.24	6.62%
  Westpac	WBCPK	Capital Notes 8	21/09/2029	2.90%	3.09%	0.14%	104.6	6.53%
  ANZ Bank	AN3PK	Capital Notes 8	20/03/2030	2.75%	2.36%	-0.01%	103.94	6.25%
  CBA	CBAPM	PERLS 16	17/06/2030	3.00%	2.42%	0.14%	105.57	6.45%
  Suncorp	SUNPJ	Capital Notes 5	17/06/2030	2.80%	2.66%	-0.10%	103.8	6.36%
  Nat Aust Bank	NABPJ	Capital Notes 7	17/09/2030	2.80%	2.49%	0.03%	104.53	6.31%
  Bendigo Bank	BENPi	Capital Notes 2	13/12/2030	3.20%	2.77%	-0.01%	105.32	6.67%
  Insurance Australia	IAGPF	Capital Notes 3	15/12/2030	3.20%	2.91%	-0.08%	105.68	6.70%
  ANZ Bank	AN3PL	Capital Notes 9	20/03/2031	2.90%	2.34%	0.02%	105.02	6.34%
  Westpac	WBCPM	Capital Notes 10	22/09/2031	3.10%	2.90%	0.00%	106.3	6.62%
  Macquarie Group	MQGPG	Capital Notes 7	15/12/2031	2.65%	2.54%	-0.07%	103.45	6.20%
  Nat Aust Bank	NABPK	Capital Notes 8	17/03/2032	2.60%	2.34%	-0.05%	104.5	6.11%

• 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%	5.18%	-0.02%	89.6	8.79%
  Ramsay Health Care	RHCPA	Preference Share	Perpetual	4.85%	4.54%	-0.06%	108.25	8.15%