20 October 2025

Summary-

The Australian bank hybrid market remains resilient, with yields holding steady and trading margins reflecting a balanced risk appetite among investors.

Key Market Observations

  • Running yields for major bank-issued hybrids are mostly in the 6.0% to 7.4% range, with a few securities offering higher returns.
  • Trading margins are generally between 1.0% and 2.0%, indicating stable demand and moderate risk pricing.
  • Price levels remain close to or slightly above par for most securities, suggesting continued investor confidence in bank credit quality.

Top-Yielding Bank Hybrids

  • Judo Capital (JDOPA) leads the pack with a running yield of 9.40% and a trading margin of 4.60%, reflecting its higher risk profile and premium pricing.
  • Latitude (LFSPA) offers a strong 8.37% yield with a trading margin of 6.50%, trading below par at $98.50.
  • Challenger (CGFPC) shows a negative trading margin (−0.14%) but maintains a high running yield of 7.87%, indicating strong market pricing.

Major Bank Hybrids Performance

  • CBA PERLS series (CBAPJ, CBAPI, CBAPL, CBAPK, CBAPM) yield between 6.02% and 6.32%, with trading margins around 1.1% to 1.6%.
  • Westpac Capital Notes (WBCPJ, WBCPL, WBCPK, WBCPM) offer yields from 6.09% to 6.69%, with margins up to 1.76%.
  • ANZ Capital Notes (AN3PI to AN3PL) yield between 5.99% and 6.26%, with trading margins averaging 1.6% to 1.8%.
  • NAB hybrids (NABPF to NABPK) show yields from 5.81% to 7.33%, with trading margins mostly above 1.4%.

Regional and Non-Big Four Banks

  • Bank of Queensland (BOQPF, BOQPG) and Bendigo Bank (BENPH, BENPi) hybrids yield around 6.60% to 6.99%, with trading margins between 0.93% and 1.83%.
  • Macquarie Group hybrids (MQGPD to MQGPG) yield between 5.95% and 7.41%, with margins up to 2.00%.

Non-Standard Hybrids

  • Ramsay Health Care (RHCPA) trades at $106.75, offering a running yield of 7.83% and a trading margin of 4.34%.
  • Nufarm (NFNG), a step-up perpetual, trades at $88.00 with a running yield of 8.43%, reflecting its discounted price and higher margin.

  • ASX-Listed Hybrids 20.10.25

    COMPANYCODEHYBRID TYPEMATURITY/
    CALL
    DATE    		MARGIN
    INCL. CREDITS    		TRADING
    MARGIN    		DAY
    CLOSE    		RUNNING
    YIELD**
    ChallengerCGFPCCapital Notes 325/05/20264.60%-0.14%102.667.87%
    Nat Aust BankNABPFCapital Notes 317/06/20264.00%0.61%101.947.33%
    SuncorpSUNPHCapital Notes 317/06/20263.00%0.89%101.136.41%
    Macquarie GroupMQGPDCapital Notes 410/09/20264.15%0.57%102.957.41%
    CBACBAPJ PERLS 1320/10/20262.75%0.93%101.566.14%
    LatitudeLFSPACapital Notes27/10/20264.75%6.50%98.508.37%
    WestpacWBCPJCapital Notes 722/03/20273.40%1.20%102.806.69%
    CBACBAPI PERLS 1220/04/20273.00%1.11%102.506.32%
    Bank of QueenslandBOQPFCapital Notes 214/05/20273.80%0.93%104.196.99%
    Bendigo BankBENPHCapital Notes15/06/20273.80%1.08%104.026.99%
    Macquarie GroupMQGPECapital Notes 520/09/20272.90%0.88%102.706.17%
    Nat Aust BankNABPHCapital Notes 517/12/20273.50%1.42%103.946.71%
    ANZ BankAN3PICapital Notes 620/03/20283.00%1.35%103.506.26%
    CBACBAPL PERLS 1515/06/20282.85%1.46%103.186.14%
    SuncorpSUNPICapital Notes 417/06/20282.90%1.54%103.106.19%
    WestpacWBCPLCapital Notes 922/09/20283.40%1.31%105.306.53%
    Macquarie BankMBLPDCapital Notes 37/12/20282.90%1.65%103.406.17%
    Bank of QueenslandBOQPGCapital Notes 315/12/20283.40%1.83%104.206.60%
    Judo CapitalJDOPACapital Notes16/02/20296.50%4.60%111.719.40%
    ANZ BankAN3PJCapital Notes 720/03/20292.70%1.72%102.856.01%
    ChallengerCGFPDCapital Notes 425/05/20293.60%1.48%106.506.65%
    CBACBAPK PERLS 1415/06/20292.75%1.59%103.546.02%
    IAGIAGPECapital Notes 215/06/20293.50%1.92%104.906.66%
    Macquarie GroupMQGPFCapital Notes 612/09/20293.70%1.55%107.006.71%
    Nat Aust BankNABPICapital Notes 617/09/20293.15%1.50%105.346.29%
    WestpacWBCPKCapital Notes 821/09/20292.90%1.45%104.746.09%
    ANZ BankAN3PKCapital Notes 820/03/20302.75%1.65%104.005.99%
    CBACBAPM PERLS 1617/06/20303.00%1.43%105.926.12%
    SuncorpSUNPJCapital Notes 517/06/20302.80%1.87%103.516.07%
    Nat Aust BankNABPJCapital Notes 717/09/20302.80%1.67%104.466.01%
    Bendigo BankBENPiCapital Notes 213/12/20303.20%1.76%105.856.31%
    Insurance AustraliaIAGPFCapital Notes 315/12/20303.20%1.96%105.146.36%
    ANZ BankAN3PLCapital Notes 920/03/20312.90%1.79%104.786.09%
    WestpacWBCPMCapital Notes 1022/09/20313.10%1.76%106.146.20%
    Macquarie GroupMQGPGCapital Notes 715/12/20312.65%2.00%103.155.95%
    Nat Aust BankNABPKCapital Notes 817/03/20322.60%1.63%104.765.81%

  • ASX-Listed Hybrids (Non-standard) 20.10.25

    COMPANYCODEBOND TYPECALL DATEISSUE MARGIN (inc frank)TRADING MARGINCLOSING PRICE RUNNING YIELD
    NufarmNFNGStep UpPerpetual3.90%4.94%888.43%
    Ramsay Health CareRHCPAPreference SharePerpetual4.85%4.34%106.757.83%