29 September 2025

Summary –

The Australian bank hybrid securities market continues to offer compelling income opportunities, with updated figures reflecting a stable and attractive yield environment.

  • Average Trading Margin: 4.94%
  • Average Running Yield: 8.54%

These averages suggest that hybrids remain a strong option for income-focused investors, offering consistent returns above benchmark rates.

Top Performers

  • Highest Trading Margin: Nufarm (NFNG) at 5.24%
  • Highest Running Yield: Nufarm (NFNG) at 8.84%

Bottom Performers

  • Lowest Trading Margin: Ramsay Health Care (RHCPA) at 4.64%
  • Lowest Running Yield: Ramsay Health Care (RHCPA) at 8.24%

Major Banks

The “Major Banks” scatter plot shows a tight clustering of securities with call dates between 2026 and 2032, and margins to BBSW generally ranging from 2.5% to 3.5%. This reflects:

  • A compressed spread environment, typical of high-credit-quality issuers.
  • Longer-dated hybrids offering slightly lower margins, consistent with reduced reinvestment risk and investor preference for duration certainty.

Other Financials (Ex Majors)

The “Other Financials Ex Majors” chart reveals a broader spread range, with margins to BBSW extending from 0.75% to 4.00%:

  • Securities such as BOQPF, IAGPE, BENPI, and MQGPG show higher margins, indicating either higher perceived risk or greater yield incentives.
  • The wider dispersion suggests greater diversity in credit profiles and investor appetite for yield among non-major issuers.

 

hybrids - major banks hybrids - other financial ex majors

The charts reinforce a key theme: major banks offer tighter spreads with lower risk, while non-major financials provide higher margins for those willing to take on additional credit exposure. With most hybrids yielding above 6%, the market remains attractive for investors seeking reliable income streams.

 

  • COMPANYCODEHYBRID TYPEMATURITY/
    CALL
    DATE    		MARGIN
    INCL. CREDITS    		TRADING
    MARGIN    		DAY
    CHANGE    		DAY
    CLOSE    		RUNNING
    YIELD**
    ChallengerCGFPCCapital Notes 325-05-20264.60%9.16%0.06%102.668.42%
    Nat Aust BankNABPFCapital Notes 317-06-20264.00%8.19%0.05%101.77.80%
    SuncorpSUNPHCapital Notes 317-06-20263.00%7.84%0.05%100.726.81%
    Macquarie GroupMQGPDCapital Notes 410-09-20264.15%6.21%0.03%102.37.88%
    CBACBAPJ PERLS 1320-10-20262.75%5.66%0.03%1016.52%
    LatitudeLFSPACapital Notes27-10-20264.75%13.91%0.06%97.99.09%
    WestpacWBCPJCapital Notes 722-03-20273.40%6.27%0.03%102.57.26%
    CBACBAPI PERLS 1220-04-20273.00%4.26%0.02%102.256.70%
    Bank of QueenslandBOQPFCapital Notes 214-05-20273.80%5.09%0.02%103.737.52%
    Bendigo BankBENPHCapital Notes15-06-20273.80%4.63%0.02%103.277.47%
    Macquarie GroupMQGPECapital Notes 520-09-20272.90%3.52%0.01%102.46.55%
    Nat Aust BankNABPHCapital Notes 517-12-20273.50%4.00%0.01%103.47.15%
    ANZ BankAN3PICapital Notes 620-03-20283.00%3.17%0.01%102.796.60%
    CBACBAPL PERLS 1515-06-20282.85%3.46%0.01%102.626.52%
    SuncorpSUNPICapital Notes 417-06-20282.90%3.28%0.01%103.196.54%
    WestpacWBCPLCapital Notes 922-09-20283.40%4.07%0.01%104.757.09%
    Macquarie BankMBLPDCapital Notes 307-12-20282.90%3.23%0.01%102.86.53%
    Bank of QueenslandBOQPGCapital Notes 315-12-20283.40%3.49%0.01%104.26.99%
    Judo CapitalJDOPACapital Notes16-02-20296.50%4.79%0.01%1129.61%
    ANZ BankAN3PJCapital Notes 720-03-20292.70%2.62%0.01%103.36.26%
    ChallengerCGFPDCapital Notes 425-05-20293.60%3.76%0.01%104.637.20%
    CBACBAPK PERLS 1415-06-20292.75%2.99%0.01%103.36.37%
    IAGIAGPECapital Notes 215-06-20293.50%3.76%0.01%104.87.12%
    Macquarie GroupMQGPFCapital Notes 612-09-20293.70%2.96%0.01%106.497.10%
    Nat Aust BankNABPICapital Notes 617-09-20293.15%2.74%0.01%105.5996.64%
    WestpacWBCPKCapital Notes 821-09-20292.90%3.70%0.01%103.66.64%
    ANZ BankAN3PKCapital Notes 820-03-20302.75%2.67%0.01%103.4536.31%
    CBACBAPM PERLS 1617-06-20303.00%2.63%0.01%105.66.48%
    SuncorpSUNPJCapital Notes 517-06-20302.80%2.80%0.01%104.076.37%
    Nat Aust BankNABPJCapital Notes 717-09-20302.80%2.82%0.01%104.056.38%
    Bendigo BankBENPiCapital Notes 213-12-20303.20%3.20%0.01%104.56.76%
    Insurance AustraliaIAGPFCapital Notes 315-12-20303.20%3.35%0.01%104.666.80%
    ANZ BankAN3PLCapital Notes 920-03-20312.90%2.72%0.00%104.0286.42%
    WestpacWBCPMCapital Notes 1022-09-20313.10%3.26%0.01%105.656.71%
    Macquarie GroupMQGPGCapital Notes 715-12-20312.65%2.71%0.01%103.46.24%
    Nat Aust BankNABPKCapital Notes 817-03-20322.60%2.57%0.01%104.26.16%
  • COMPANYCODEBOND TYPECALL DATEISSUE MARGIN (inc frank)TRADING MARGIN?DAYCLOSING PRICE RUNNING YIELD
    NufarmNFNGStep UpPerpetual3.90%5.24%0.07%90.58.84%
    Ramsay Health CareRHCPAPreference SharePerpetual4.85%4.64%0.05%108.6398.24%