22 August 2025

Summary –

Hybrid markets were steady to slightly firmer into week-end, with average running yield at ~6.9% and median at ~6.6% across 39 securities. Trading margins remain compressed for the major bank cohort (medians around 2.4–3.5%), while non-bank names continue to offer a premium.

Banks as a group priced on an average trading margin ~5.64% and average running yield ~6.71% (skewed by one short-dated outlier), compared with ~6.30% / ~7.98% for non-banks.

Moves on the day

Day-to-day changes were modest across the board except one short-dated Westpac line:

  • Westpac WBCPH rallied sharply (+3.56% on the day; price 100.45; running yield 7.11%). With a first call on 22 Sep 2025, pricing is increasingly driven by redemption expectations and short time-to-call, which can distort the quoted trading margin (the print was unusually high in today’s file).

  • Outside of WBCPH, most lines moved ±0.10% or less, pointing to a quiet session with a mild bid tone.

(See the “Top 10 Daily Movers” table I’ve surfaced alongside this note for the full list.)

Yield leaders (compensation for extra risk)

The top running yields remain concentrated in non-bank financials and insurers:

  • Judo Capital JDOPA ~9.55% running yield (price ~111.30; TM ~4.69%).

  • Latitude LFSPA ~8.94% (price ~98.30; TM ~11.83%).

  • Challenger CGFPC ~8.41%.

  • Several Macquarie and regional-bank lines print ~7.0–7.3%.

These elevated coupons typically reflect higher issuer risk and/or structural features; investors should weigh credit quality and extension risk carefully.

Major bank cohort — anchored around mid-6s yields

Ex-the short-dated Westpac anomaly, the Big Four cluster tightly:

  • Median trading margins roughly 2.4–3.5% across ANZ, CBA, NAB and the longer-dated Westpac lines.

  • Median running yields ~6.3–7.0%, consistent with the broader rally in senior curves and stickier cash rate expectations.

  • Macquarie prints a median TM ~2.7% and median running yield ~6.7%, sitting between majors and regionals.

  • COMPANYCODEHYBRID TYPEMATURITY/
    CALL
    DATE    		MARGIN
    INCL. CREDITS    		TRADING
    MARGIN    		DAY
    CHANGE    		DAY
    CLOSE    		RUNNING
    YIELD**
    WestpacWBCPHCapital Notes 522-09-20253.20%80.35%3.56%100.4527.11%
    AMP GroupAMPPBCapital Notes 216-12-20254.50%9.09%0.11%102.28.18%
    Macquarie BankMBLPCCapital Notes 222-12-20254.70%8.85%0.10%101.958.38%
    ChallengerCGFPCCapital Notes 325-05-20264.60%8.81%0.05%101.668.41%
    Nat Aust BankNABPFCapital Notes 317-06-20264.00%4.78%0.03%103.17.61%
    SuncorpSUNPHCapital Notes 317-06-20263.00%4.82%0.03%101.8516.66%
    Macquarie GroupMQGPDCapital Notes 410-09-20264.15%3.65%0.02%103.97.67%
    CBACBAPJ PERLS 1320-10-20262.75%2.97%0.02%102.926.33%
    LatitudeLFSPACapital Notes27-10-20264.75%11.83%0.04%98.38.94%
    WestpacWBCPJCapital Notes 722-03-20273.40%4.70%0.02%103.667.09%
    CBACBAPI PERLS 1220-04-20273.00%3.13%0.01%103.136.57%
    Bank of QueenslandBOQPFCapital Notes 214-05-20273.80%4.96%0.02%102.997.49%
    Bendigo BankBENPHCapital Notes15-06-20273.80%3.37%0.01%104.457.30%
    Macquarie GroupMQGPECapital Notes 520-09-20272.90%2.85%0.01%102.986.45%
    Nat Aust BankNABPHCapital Notes 517-12-20273.50%2.91%0.01%104.86.97%
    ANZ BankAN3PICapital Notes 620-03-20283.00%2.42%0.01%103.9186.47%
    CBACBAPL PERLS 1515-06-20282.85%2.61%0.01%103.926.37%
    SuncorpSUNPICapital Notes 417-06-20282.90%3.09%0.01%102.916.49%
    WestpacWBCPLCapital Notes 922-09-20283.40%3.51%0.01%105.346.97%
    Macquarie BankMBLPDCapital Notes 307-12-20282.90%2.51%0.01%104.156.39%
    Bank of QueenslandBOQPGCapital Notes 315-12-20283.40%2.99%0.01%104.796.87%
    Judo CapitalJDOPACapital Notes16-02-20296.50%4.69%0.01%111.39.55%
    ANZ BankAN3PJCapital Notes 720-03-20292.70%2.42%0.00%103.46.20%
    ChallengerCGFPDCapital Notes 425-05-20293.60%3.45%0.01%104.767.11%
    CBACBAPK PERLS 1415-06-20292.75%2.48%0.01%104.196.25%
    IAGIAGPECapital Notes 215-06-20293.50%3.18%0.01%105.96.98%
    Macquarie GroupMQGPFCapital Notes 612-09-20293.70%2.56%0.01%107.156.99%
    Nat Aust BankNABPICapital Notes 617-09-20293.15%2.37%0.01%106.126.53%
    WestpacWBCPKCapital Notes 821-09-20292.90%3.14%0.01%104.5956.50%
    ANZ BankAN3PKCapital Notes 820-03-20302.75%2.39%0.00%103.956.22%
    CBACBAPM PERLS 1617-06-20303.00%2.40%0.00%105.786.40%
    SuncorpSUNPJCapital Notes 517-06-20302.80%2.75%0.01%103.66.34%
    Nat Aust BankNABPJCapital Notes 717-09-20302.80%2.50%0.00%104.616.28%
    Bendigo BankBENPiCapital Notes 213-12-20303.20%2.80%0.00%105.346.64%
    Insurance AustraliaIAGPFCapital Notes 315-12-20303.20%3.02%0.00%105.356.69%
    ANZ BankAN3PLCapital Notes 920-03-20312.90%2.36%0.00%105.0016.30%
    WestpacWBCPMCapital Notes 1022-09-20313.10%2.84%0.00%106.76.57%
    Macquarie GroupMQGPGCapital Notes 715-12-20312.65%2.62%0.00%103.226.19%
    Nat Aust BankNABPKCapital Notes 817-03-20322.60%2.30%0.00%104.836.06%

  • ASX-Listed Hybrids (Non-standard)

    COMPANYCODEBOND TYPECALL DATEISSUE MARGIN (inc frank)TRADING MARGINDAYCLOSING PRICE RUNNING YIELD
    NufarmNFNGStep UpPerpetual3.90%5.15%-0.02%89.78.72%
    Ramsay Health CareRHCPAPreference SharePerpetual4.85%4.54%-0.01%108.058.11%