19 August 2025

Summary –

Hybrid securities from Australia’s major banks continue to provide investors with steady income opportunities, with running yields generally ranging between 6.1% and 8.4%.

Westpac remains one of the most active issuers, with multiple series of Capital Notes on issue. Its nearer-term WBCPH (maturity September 2025) trades on a yield of 7.15%, while longer-dated securities such as WBCPM (September 2031) are priced around 6.6%. Pricing indicates a clear yield curve effect, with shorter maturities carrying higher running yields.

Macquarie Bank hybrids also screen attractively, with MBLPC (December 2025) delivering one of the highest yields among the majors at 8.42%, reflecting its higher margin of 4.70%. The more recently issued MBLPD (December 2028) trades on a lower yield of 6.43% as demand for longer-dated paper remains firm.

For National Australia Bank, the NABPF (June 2026) hybrid currently offers a yield of 7.65%, while its more recent securities such as NABPK (March 2032) trade tighter, around 6.10%. The bank’s curve shows a consistent decline in yield as maturities extend, in line with broader market pricing trends.

ANZ Bank hybrids follow a similar pattern, with older notes such as AN3PI (March 2028) yielding 6.51%, compared with the longer-dated AN3PL (March 2031) at 6.35%.

Overall, trading margins for bank hybrids remain in the 2.3%–4.7% range, with spreads on shorter-dated issues significantly wider, reflecting upcoming call dates and higher refinancing risk. By contrast, longer maturities have settled into a tighter trading range, consistent with stable credit conditions and strong demand from income-focused investors.

Non-bank hybrids, such as Nufarm (NFNG) and Ramsay Health Care (RHCPA), continue to trade actively but represent a smaller portion of the market. These securities typically carry higher risk profiles and trade on running yields of 8–9%, above those of the major banks.

• 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%	70.48%	1.89%	100.452	7.15%
  AMP Group	AMPPB	Capital Notes 2	16/12/2025	4.50%	8.76%	0.63%	102.2	8.22%
  Macquarie Bank	MBLPC	Capital Notes 2	22/12/2025	4.70%	8.56%	1.46%	101.95	8.42%
  Challenger	CGFPC	Capital Notes 3	25/05/2026	4.60%	8.66%	1.13%	101.66	8.45%
  Nat Aust Bank	NABPF	Capital Notes 3	17/06/2026	4.00%	4.68%	0.22%	103.1	7.65%
  Suncorp	SUNPH	Capital Notes 3	17/06/2026	3.00%	4.73%	-0.04%	101.851	6.70%
  Macquarie Group	MQGPD	Capital Notes 4	10/09/2026	4.15%	3.60%	-0.18%	103.9	7.71%
  CBA	CBAPJ	PERLS 13	20/10/2026	2.75%	2.92%	-0.34%	102.92	6.37%
  Latitude	LFSPA	Capital Notes	27/10/2026	4.75%	11.71%	0.29%	98.3	8.98%
  Westpac	WBCPJ	Capital Notes 7	22/03/2027	3.40%	4.65%	-0.16%	103.66	7.13%
  CBA	CBAPI	PERLS 12	20/04/2027	3.00%	3.09%	-0.11%	103.13	6.61%
  Bank of Queensland	BOQPF	Capital Notes 2	14/05/2027	3.80%	4.90%	0.05%	102.99	7.53%
  Bendigo Bank	BENPH	Capital Notes	15/06/2027	3.80%	3.33%	-0.02%	104.45	7.34%
  Macquarie Group	MQGPE	Capital Notes 5	20/09/2027	2.90%	2.82%	0.18%	102.98	6.49%
  Nat Aust Bank	NABPH	Capital Notes 5	17/12/2027	3.50%	2.88%	-0.11%	104.8	7.01%
  ANZ Bank	AN3PI	Capital Notes 6	20/03/2028	3.00%	2.40%	-0.17%	103.918	6.51%
  CBA	CBAPL	PERLS 15	15/06/2028	2.85%	2.59%	-0.02%	103.92	6.41%
  Suncorp	SUNPI	Capital Notes 4	17/06/2028	2.90%	3.07%	0.11%	102.91	6.53%
  Westpac	WBCPL	Capital Notes 9	22/09/2028	3.40%	3.48%	-0.17%	105.34	7.01%
  Macquarie Bank	MBLPD	Capital Notes 3	7/12/2028	2.90%	2.50%	-0.09%	104.15	6.43%
  Bank of Queensland	BOQPG	Capital Notes 3	15/12/2028	3.40%	2.97%	0.21%	104.79	6.91%
  Judo Capital	JDOPA	Capital Notes	16/02/2029	6.50%	4.66%	0.38%	111.3	9.58%
  ANZ Bank	AN3PJ	Capital Notes 7	20/03/2029	2.70%	2.40%	-0.07%	103.4	6.24%
  Challenger	CGFPD	Capital Notes 4	25/05/2029	3.60%	3.43%	-0.01%	104.76	7.15%
  CBA	CBAPK	PERLS 14	15/06/2029	2.75%	2.46%	0.04%	104.19	6.29%
  IAG	IAGPE	Capital Notes 2	15/06/2029	3.50%	3.16%	-0.06%	105.9	7.02%
  Macquarie Group	MQGPF	Capital Notes 6	12/09/2029	3.70%	2.55%	-0.09%	107.15	7.03%
  Nat Aust Bank	NABPI	Capital Notes 6	17/09/2029	3.15%	2.35%	-0.26%	106.12	6.57%
  Westpac	WBCPK	Capital Notes 8	21/09/2029	2.90%	3.12%	0.01%	104.595	6.54%
  ANZ Bank	AN3PK	Capital Notes 8	20/03/2030	2.75%	2.38%	0.00%	103.95	6.26%
  CBA	CBAPM	PERLS 16	17/06/2030	3.00%	2.38%	-0.05%	105.78	6.44%
  Suncorp	SUNPJ	Capital Notes 5	17/06/2030	2.80%	2.74%	0.06%	103.6	6.38%
  Nat Aust Bank	NABPJ	Capital Notes 7	17/09/2030	2.80%	2.49%	-0.02%	104.61	6.32%
  Bendigo Bank	BENPi	Capital Notes 2	13/12/2030	3.20%	2.79%	0.00%	105.34	6.68%
  Insurance Australia	IAGPF	Capital Notes 3	15/12/2030	3.20%	3.01%	0.09%	105.35	6.73%
  ANZ Bank	AN3PL	Capital Notes 9	20/03/2031	2.90%	2.35%	0.01%	105.001	6.35%
  Westpac	WBCPM	Capital Notes 10	22/09/2031	3.10%	2.83%	-0.09%	106.7	6.61%
  Macquarie Group	MQGPG	Capital Notes 7	15/12/2031	2.65%	2.61%	0.05%	103.22	6.23%
  Nat Aust Bank	NABPK	Capital Notes 8	17/03/2032	2.60%	2.29%	-0.07%	104.83	6.10%

• 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%	-0.01%	89.7	8.80%
  Ramsay Health Care	RHCPA	Preference Share	Perpetual	4.85%	4.56%	0.02%	108.05	8.18%