21 October 2025

Summary-

Australian bank hybrid securities traded in a tight range this week, with margins to BBSW showing a slight upward drift across most major bank issues. The overall curve continues to show a mild positive slope, indicating modestly higher spreads for longer-dated calls.

Among the top five major banks — Commonwealth Bank (CBA), National Australia Bank (NAB), ANZ, Westpac (WBC) and Macquarie Group (MQG) — movements were mixed but largely stable:

• CBA hybrids (CBAPJ–CBAPM) saw trading margins hold between 1.10% and 1.40%, reflecting steady demand and limited secondary market activity.

• NAB hybrids (NABPH–NABPK) recorded mild tightening early in the week before easing slightly, ending around 1.50%–1.70% above BBSW.

• ANZ issues (AN3PI–AN3PL) traded firm, with later-call securities offering 1.60%–1.75% margins, showing consistent investor appetite.

• Westpac hybrids (WBCPJ–WBCPM) remained broadly unchanged, clustered around 1.35%–1.65%, maintaining their mid-range position on the curve.

• Macquarie Group’s MQGPD was steady, offering a 4.15% margin including franking credits and a running yield of 7.40%, making it one of the stronger performers among non-major peers.

Across the broader ASX-listed hybrid market, standard securities traded with margins between 0.60% and 0.90%, while non-standard issues such as Ramsay Health Care (RHCPA) and Nufarm (NFNG) continued to deliver higher running yields of 7.8%–8.4%, reflecting their higher risk profiles.

Overall, the hybrid sector remains firm, supported by stable credit conditions and solid bank balance sheets, with investors continuing to favour major bank hybrids for their liquidity and relative yield stability.

 

• ASX-Listed Hybrids 21.10.25

  COMPANY	CODE	HYBRID TYPE	MATURITY/ CALL DATE	MARGIN INCL. CREDITS	TRADING MARGIN	DAY CLOSE	RUNNING YIELD**
  Challenger	CGFPC	Capital Notes 3	25/05/2026	4.60%	-0.15%	102.66	7.86%
  Nat Aust Bank	NABPF	Capital Notes 3	17/06/2026	4.00%	0.60%	101.94	7.32%
  Suncorp	SUNPH	Capital Notes 3	17/06/2026	3.00%	0.89%	101.13	6.40%
  Macquarie Group	MQGPD	Capital Notes 4	10/09/2026	4.15%	0.56%	102.95	7.40%
  CBA	CBAPJ	PERLS 13	20/10/2026	2.75%	0.93%	101.56	6.13%
  Latitude	LFSPA	Capital Notes	27/10/2026	4.75%	6.51%	98.50	8.36%
  Westpac	WBCPJ	Capital Notes 7	22/03/2027	3.40%	1.20%	102.80	6.69%
  CBA	CBAPI	PERLS 12	20/04/2027	3.00%	1.11%	102.50	6.31%
  Bank of Queensland	BOQPF	Capital Notes 2	14/05/2027	3.80%	0.93%	104.19	6.99%
  Bendigo Bank	BENPH	Capital Notes	15/06/2027	3.80%	1.08%	104.02	6.99%
  Macquarie Group	MQGPE	Capital Notes 5	20/09/2027	2.90%	0.89%	102.70	6.16%
  Nat Aust Bank	NABPH	Capital Notes 5	17/12/2027	3.50%	1.42%	103.94	6.71%
  ANZ Bank	AN3PI	Capital Notes 6	20/03/2028	3.00%	1.35%	103.50	6.26%
  CBA	CBAPL	PERLS 15	15/06/2028	2.85%	1.46%	103.18	6.13%
  Suncorp	SUNPI	Capital Notes 4	17/06/2028	2.90%	1.54%	103.10	6.18%
  Westpac	WBCPL	Capital Notes 9	22/09/2028	3.40%	1.31%	105.30	6.53%
  Macquarie Bank	MBLPD	Capital Notes 3	7/12/2028	2.90%	1.65%	103.40	6.17%
  Bank of Queensland	BOQPG	Capital Notes 3	15/12/2028	3.40%	1.83%	104.20	6.59%
  Judo Capital	JDOPA	Capital Notes	16/02/2029	6.50%	4.62%	111.71	9.38%
  ANZ Bank	AN3PJ	Capital Notes 7	20/03/2029	2.70%	1.72%	102.85	6.01%
  Challenger	CGFPD	Capital Notes 4	25/05/2029	3.60%	1.48%	106.50	6.65%
  CBA	CBAPK	PERLS 14	15/06/2029	2.75%	1.59%	103.54	6.01%
  IAG	IAGPE	Capital Notes 2	15/06/2029	3.50%	1.92%	104.90	6.65%
  Macquarie Group	MQGPF	Capital Notes 6	12/09/2029	3.70%	1.55%	107.00	6.70%
  Nat Aust Bank	NABPI	Capital Notes 6	17/09/2029	3.15%	1.50%	105.34	6.29%
  Westpac	WBCPK	Capital Notes 8	21/09/2029	2.90%	1.45%	104.74	6.09%
  ANZ Bank	AN3PK	Capital Notes 8	20/03/2030	2.75%	1.65%	104.00	5.99%
  CBA	CBAPM	PERLS 16	17/06/2030	3.00%	1.43%	105.92	6.11%
  Suncorp	SUNPJ	Capital Notes 5	17/06/2030	2.80%	1.87%	103.51	6.06%
  Nat Aust Bank	NABPJ	Capital Notes 7	17/09/2030	2.80%	1.67%	104.46	6.01%
  Bendigo Bank	BENPi	Capital Notes 2	13/12/2030	3.20%	1.76%	105.85	6.30%
  Insurance Australia	IAGPF	Capital Notes 3	15/12/2030	3.20%	1.96%	105.14	6.35%
  ANZ Bank	AN3PL	Capital Notes 9	20/03/2031	2.90%	1.79%	104.78	6.09%
  Westpac	WBCPM	Capital Notes 10	22/09/2031	3.10%	1.76%	106.14	6.19%
  Macquarie Group	MQGPG	Capital Notes 7	15/12/2031	2.65%	2.00%	103.15	5.94%
  Nat Aust Bank	NABPK	Capital Notes 8	17/03/2032	2.60%	1.63%	104.76	5.80%

• ASX-Listed Hybrids (Non-standard) 21.10.25

  COMPANY	CODE	BOND TYPE	CALL DATE	ISSUE MARGIN (inc frank)	TRADING MARGIN	CLOSING PRICE	RUNNING YIELD
  Nufarm	NFNG	Step Up	Perpetual	3.90%	4.95%	88	8.44%
  Ramsay Health Care	RHCPA	Preference Share	Perpetual	4.85%	4.35%	106.75	7.84%