18 July 2025

Summary:

The ASX-listed hybrid market remained buoyant this week, retaining its reputation as a steady, income-generating segment for Australian investors. While equity markets continue to fluctuate and cash deposit rates remain subdued, hybrids offer compelling yields with a measured balance of risk and return.

Key Trends

• Stability and Demand: The hybrid market held its ground, showcasing low volatility and robust investor sentiment. Bank-issued hybrids, in particular, dominated trading volumes and attracted sustained demand.

• Attractive Yields: Major bank hybrids continue to provide running yields generally between 7.2% and 8.5%, appealing to investors searching for income without taking on excessive credit risk.

Standout Performers

Several hybrid securities notably outperformed the pack this week:

• Macquarie Bank (MBLPC): Delivered a running yield of 8.53%, underpinned by strong demand and a trading margin of 8.42%.

• AMP Group (AMPPB): Achieved an 8.36% running yield, drawing attention for its elevated margin and relatively near-term call date.

• Challenger (CGFPC): Offered an impressive 8.40% running yield.

Among the majors, Westpac’s WBCPH stood out with a notable 0.64% daily gain as it approaches its September 2025 call date. This heightened activity underscores the keen focus on hybrids nearing maturity, especially as issuers manage their capital rollover strategies.

Non-Standard Hybrids: Higher Yields, Higher Risks

On the fringes of the traditional hybrid sector, non-standard instruments continued to capture the interest of yield-focused investors:

• Nufarm (NFNG): Provided a robust 9.01% running yield via its perpetual step-up security.

• Ramsay Health Care (RHCPA): Delivered 8.34% on its preference share.

While these non-standard hybrids offer a significant uplift in yield, investors should be mindful of the additional structural complexities and risk profiles, most notably the perpetual nature of these securities and their sensitivity to market conditions

 

• 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%	32.30%	0.64%	99.97	7.23%
  AMP Group	AMPPB	Capital Notes 2	16/12/2025	4.50%	9.18%	0.09%	101	8.36%
  Macquarie Bank	MBLPC	Capital Notes 2	22/12/2025	4.70%	8.42%	0.07%	101.049	8.53%
  Challenger	CGFPC	Capital Notes 3	25/05/2026	4.60%	6.17%	0.04%	102.47	8.40%
  Nat Aust Bank	NABPF	Capital Notes 3	17/06/2026	4.00%	4.97%	0.03%	102.099	7.76%
  Suncorp	SUNPH	Capital Notes 3	17/06/2026	3.00%	4.98%	0.03%	100.88	6.82%
  Macquarie Group	MQGPD	Capital Notes 4	10/09/2026	4.15%	4.38%	0.02%	102.5	7.87%
  CBA	CBAPJ	PERLS 13	20/10/2026	2.75%	4.01%	0.02%	101.05	6.55%
  Latitude	LFSPA	Capital Notes	27/10/2026	4.75%	12.28%	0.04%	96.5	9.18%
  Westpac	WBCPJ	Capital Notes 7	22/03/2027	3.40%	5.13%	0.02%	102.197	7.28%
  CBA	CBAPI	PERLS 12	20/04/2027	3.00%	3.46%	0.01%	101.91	6.75%
  Bank of Queensland	BOQPF	Capital Notes 2	14/05/2027	3.80%	4.63%	0.02%	102.58	7.59%
  Bendigo Bank	BENPH	Capital Notes	15/06/2027	3.80%	4.09%	0.01%	102.5	7.53%
  Macquarie Group	MQGPE	Capital Notes 5	20/09/2027	2.90%	3.38%	0.01%	101.39	6.66%
  Nat Aust Bank	NABPH	Capital Notes 5	17/12/2027	3.50%	3.45%	0.01%	103	7.18%
  ANZ Bank	AN3PI	Capital Notes 6	20/03/2028	3.00%	2.97%	0.01%	102.16	6.69%
  CBA	CBAPL	PERLS 15	15/06/2028	2.85%	3.23%	0.01%	101.76	6.60%
  Suncorp	SUNPI	Capital Notes 4	17/06/2028	2.90%	3.58%	0.01%	101.05	6.70%
  Westpac	WBCPL	Capital Notes 9	22/09/2028	3.40%	3.86%	0.01%	103.68	7.17%
  Macquarie Bank	MBLPD	Capital Notes 3	7/12/2028	2.90%	3.02%	0.01%	102.2	6.61%
  Bank of Queensland	BOQPG	Capital Notes 3	15/12/2028	3.40%	3.53%	0.01%	102.601	7.11%
  Judo Capital	JDOPA	Capital Notes	16/02/2029	6.50%	4.10%	0.01%	112	9.52%
  ANZ Bank	AN3PJ	Capital Notes 7	20/03/2029	2.70%	2.93%	0.00%	101.39	6.43%
  Challenger	CGFPD	Capital Notes 4	25/05/2029	3.60%	3.62%	0.01%	103.5	7.29%
  CBA	CBAPK	PERLS 14	15/06/2029	2.75%	3.05%	0.01%	101.77	6.50%
  IAG	IAGPE	Capital Notes 2	15/06/2029	3.50%	3.93%	0.01%	103	7.28%
  Macquarie Group	MQGPF	Capital Notes 6	12/09/2029	3.70%	2.94%	0.01%	105.3	7.20%
  Nat Aust Bank	NABPI	Capital Notes 6	17/09/2029	3.15%	2.88%	0.01%	103.77	6.77%
  Westpac	WBCPK	Capital Notes 8	21/09/2029	2.90%	3.40%	0.01%	103.04	6.69%
  ANZ Bank	AN3PK	Capital Notes 8	20/03/2030	2.75%	2.83%	0.00%	101.86	6.45%
  CBA	CBAPM	PERLS 16	17/06/2030	3.00%	2.65%	0.00%	104.19	6.60%
  Suncorp	SUNPJ	Capital Notes 5	17/06/2030	2.80%	3.07%	0.00%	101.76	6.55%
  Nat Aust Bank	NABPJ	Capital Notes 7	17/09/2030	2.80%	2.80%	0.00%	102.801	6.48%
  Bendigo Bank	BENPi	Capital Notes 2	13/12/2030	3.20%	3.26%	0.00%	102.85	6.89%
  Insurance Australia	IAGPF	Capital Notes 3	15/12/2030	3.20%	3.55%	0.00%	102.7	6.97%
  ANZ Bank	AN3PL	Capital Notes 9	20/03/2031	2.90%	2.80%	0.00%	102.69	6.55%
  Westpac	WBCPM	Capital Notes 10	22/09/2031	3.10%	3.25%	0.00%	104.21	6.82%
  Macquarie Group	MQGPG	Capital Notes 7	15/12/2031	2.65%	2.88%	0.00%	101.5	6.40%
  Nat Aust Bank	NABPK	Capital Notes 8	17/03/2032	2.60%	2.50%	0.00%	103.26	6.25%

• 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%	5.30%	-0.03%	87.2	9.01%
  Ramsay Health Care	RHCPA	Preference Share	Perpetual	4.85%	4.63%	-0.02%	105.6	8.34%