Summary-
The ASX-listed hybrid market continues to offer robust income opportunities amid growing expectations of interest rate cuts in the second half of 2025. Yields on bank and financial institution-issued hybrids remain elevated, with short-term notes particularly attractive.
Yield Highlights
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AMP Capital Notes (AMPPB) and Macquarie Bank Notes (MBLPC), both maturing in Dec 2025, are offering running yields of 8.21% and 8.39%, respectively—some of the highest across the sector.
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Trading margins for quality bank hybrids like Westpac’s WBCPH (3.20%) and NAB’s NABPF (4.00%) suggest strong demand and moderate risk perception.
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Despite maturity nearing, these hybrids are trading close to or slightly above par, signaling confidence in call/redemption outcomes.
Notable Trends
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The average running yield across top-tier bank hybrids remains above 7%, maintaining appeal for income-focused investors amid easing inflation and bond yield compression.
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Day-on-day price changes remain minimal (mostly under 0.1%), indicating a steady and liquid secondary market.
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The trading margin on AMPPB (7.90%) still reflects some credit premium likely due to AMP’s historical restructuring reputation—contrasting with more compressed spreads in major banks like NAB and WBC.
Strategic Takeaways
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Investors seeking short-duration income can find compelling value in hybrids maturing in late 2025 to mid-2026, many of which yield 7.5%–8.5%.
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Capital preservation and call certainty will play a crucial role in security selection over the next 6–12 months.
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As the RBA tilts dovish, reinvestment risk may rise post-redemption—making current hybrid yields
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% | 24.17% | 0.39% | 99.97 | 7.09% |
| AMP Group | AMPPB | Capital Notes 2 | 16/12/2025 | 4.50% | 7.90% | 0.07% | 101 | 8.21% |
| Macquarie Bank | MBLPC | Capital Notes 2 | 22/12/2025 | 4.70% | 7.33% | 0.06% | 101.049 | 8.39% |
| Challenger | CGFPC | Capital Notes 3 | 25/05/2026 | 4.60% | 5.62% | 0.03% | 102.47 | 8.25% |
| Nat Aust Bank | NABPF | Capital Notes 3 | 17/06/2026 | 4.00% | 4.51% | 0.03% | 102.099 | 7.62% |
| Suncorp | SUNPH | Capital Notes 3 | 17/06/2026 | 3.00% | 4.53% | 0.03% | 100.88 | 6.68% |
| Macquarie Group | MQGPD | Capital Notes 4 | 10/09/2026 | 4.15% | 4.08% | 0.02% | 102.5 | 7.73% |
| CBA | CBAPJ | PERLS 13 | 20/10/2026 | 2.75% | 3.71% | 0.02% | 101.05 | 6.41% |
| Latitude | LFSPA | Capital Notes | 27/10/2026 | 4.75% | 11.64% | 0.04% | 96.5 | 9.02% |
| Westpac | WBCPJ | Capital Notes 7 | 22/03/2027 | 3.40% | 4.85% | 0.02% | 102.197 | 7.14% |
| CBA | CBAPI | PERLS 12 | 20/04/2027 | 3.00% | 3.25% | 0.01% | 101.91 | 6.61% |
| Bank of Queensland | BOQPF | Capital Notes 2 | 14/05/2027 | 3.80% | 4.37% | 0.02% | 102.58 | 7.45% |
| Bendigo Bank | BENPH | Capital Notes | 15/06/2027 | 3.80% | 3.88% | 0.01% | 102.5 | 7.39% |
| Macquarie Group | MQGPE | Capital Notes 5 | 20/09/2027 | 2.90% | 3.23% | 0.01% | 101.39 | 6.52% |
| Nat Aust Bank | NABPH | Capital Notes 5 | 17/12/2027 | 3.50% | 3.28% | 0.01% | 103 | 7.05% |
| ANZ Bank | AN3PI | Capital Notes 6 | 20/03/2028 | 3.00% | 2.86% | 0.01% | 102.16 | 6.56% |
| CBA | CBAPL | PERLS 15 | 15/06/2028 | 2.85% | 3.09% | 0.01% | 101.76 | 6.47% |
| Suncorp | SUNPI | Capital Notes 4 | 17/06/2028 | 2.90% | 3.44% | 0.01% | 101.05 | 6.57% |
| Westpac | WBCPL | Capital Notes 9 | 22/09/2028 | 3.40% | 3.72% | 0.01% | 103.68 | 7.03% |
| Macquarie Bank | MBLPD | Capital Notes 3 | 7/12/2028 | 2.90% | 2.92% | 0.01% | 102.2 | 6.48% |
| Bank of Queensland | BOQPG | Capital Notes 3 | 15/12/2028 | 3.40% | 3.41% | 0.01% | 102.601 | 6.97% |
| Judo Capital | JDOPA | Capital Notes | 16/02/2029 | 6.50% | 3.95% | 0.01% | 112 | 9.37% |
| ANZ Bank | AN3PJ | Capital Notes 7 | 20/03/2029 | 2.70% | 2.85% | 0.00% | 101.39 | 6.31% |
| Challenger | CGFPD | Capital Notes 4 | 25/05/2029 | 3.60% | 3.50% | 0.01% | 103.5 | 7.15% |
| CBA | CBAPK | PERLS 14 | 15/06/2029 | 2.75% | 2.95% | 0.01% | 101.77 | 6.37% |
| IAG | IAGPE | Capital Notes 2 | 15/06/2029 | 3.50% | 3.83% | 0.01% | 103 | 7.14% |
| Macquarie Group | MQGPF | Capital Notes 6 | 12/09/2029 | 3.70% | 2.86% | 0.01% | 105.3 | 7.07% |
| Nat Aust Bank | NABPI | Capital Notes 6 | 17/09/2029 | 3.15% | 2.78% | 0.01% | 103.77 | 6.64% |
| Westpac | WBCPK | Capital Notes 8 | 21/09/2029 | 2.90% | 3.29% | 0.01% | 103.04 | 6.56% |
| ANZ Bank | AN3PK | Capital Notes 8 | 20/03/2030 | 2.75% | 2.76% | 0.00% | 101.86 | 6.33% |
| CBA | CBAPM | PERLS 16 | 17/06/2030 | 3.00% | 2.56% | 0.00% | 104.19 | 6.46% |
| Suncorp | SUNPJ | Capital Notes 5 | 17/06/2030 | 2.80% | 2.98% | 0.00% | 101.76 | 6.42% |
| Nat Aust Bank | NABPJ | Capital Notes 7 | 17/09/2030 | 2.80% | 2.72% | 0.00% | 102.801 | 6.35% |
| Bendigo Bank | BENPi | Capital Notes 2 | 13/12/2030 | 3.20% | 3.17% | 0.00% | 102.85 | 6.76% |
| Insurance Australia | IAGPF | Capital Notes 3 | 15/12/2030 | 3.20% | 3.48% | 0.00% | 102.7 | 6.84% |
| ANZ Bank | AN3PL | Capital Notes 9 | 20/03/2031 | 2.90% | 2.74% | 0.00% | 102.69 | 6.43% |
| Westpac | WBCPM | Capital Notes 10 | 22/09/2031 | 3.10% | 3.17% | 0.00% | 104.21 | 6.68% |
| Macquarie Group | MQGPG | Capital Notes 7 | 15/12/2031 | 2.65% | 2.81% | 0.00% | 101.5 | 6.27% |
| Nat Aust Bank | NABPK | Capital Notes 8 | 17/03/2032 | 2.60% | 2.43% | 0.00% | 103.26 | 6.12% |
| COMPANY | CODE | BOND TYPE | CALL DATE | ISSUE MARGIN (inc frank) | TRADING MARGIN | DAY | CLOSING PRICE | RUNNING YIELD |
|---|---|---|---|---|---|---|---|---|
| Nufarm | NFNG | Step Up | Perpetual | 3.90% | 5.39% | 0.00% | 87.2 | 8.98% |
| Ramsay Health Care | RHCPA | Preference Share | Perpetual | 4.85% | 4.71% | 0.00% | 105.6 | 8.31% |