3 September 2025

Summary –

The ASX hybrid market continues to reflect a bifurcation between short-dated instruments nearing call/maturity and longer-dated notes with extended optionality. Trading margins have compressed modestly across major bank-issued hybrids, suggesting sustained demand despite macro uncertainties. Running yields remain attractive, particularly for mid-tier issuers and newer series.

1. Short-Dated Hybrids (2025–2026)

  • Westpac WBCPH (Sep 2025) shows an anomalously high trading margin (167.68%) likely due to data irregularity or pricing distortion. Excluding this, most 2025–2026 notes trade with margins between 4.5%–9%.
  • AMP (AMPPB) and Macquarie Bank (MBLPC) offer compelling yields (8.19% and 8.36%) with call dates in late 2025, suggesting strong carry potential for short-term investors.

2. Mid-Dated Hybrids (2027–2029)

  • Judo Capital (JDOPA) stands out with a 6.5% issue margin and a 9.51% running yield—highest among peers—reflecting its non-major bank risk premium.
  • Macquarie Group (MQGPE) and NABPH trade with moderate margins (~3%) and yields near 7%, balancing credit quality with income.

3. Long-Dated Hybrids (2030–2032)

  • Trading margins compress significantly for longer-dated notes, with majors like CBA (CBAPM) and ANZ (AN3PL) offering margins around 2.4%–2.9%.
  • Running yields hover in the 6.2%–6.6% range, indicating investor confidence in long-term bank credit and stability of franking benefits.

 

  • COMPANYCODEHYBRID TYPEMATURITY/
    CALL
    DATE    		MARGIN
    INCL. CREDITS    		TRADING
    MARGIN    		DAY
    CHANGE    		DAY
    CLOSE    		RUNNING
    YIELD**
    WestpacWBCPHCapital Notes 522-09-20253.20%167.68%13.54%100.57.12%
    AMP GroupAMPPBCapital Notes 216-12-20254.50%10.02%0.14%102.368.19%
    Macquarie BankMBLPCCapital Notes 222-12-20254.70%8.57%0.11%102.48.36%
    ChallengerCGFPCCapital Notes 325-05-20264.60%8.93%0.05%1028.40%
    Nat Aust BankNABPFCapital Notes 317-06-20264.00%4.91%0.03%103.2917.62%
    SuncorpSUNPHCapital Notes 317-06-20263.00%4.86%0.03%102.116.66%
    Macquarie GroupMQGPDCapital Notes 410-09-20264.15%5.05%0.02%102.87.78%
    CBACBAPJ PERLS 1320-10-20262.75%3.19%0.02%102.936.35%
    LatitudeLFSPACapital Notes27-10-20264.75%12.34%0.05%98.318.97%
    WestpacWBCPJCapital Notes 722-03-20273.40%4.85%0.02%103.757.10%
    CBACBAPI PERLS 1220-04-20273.00%3.24%0.01%103.216.59%
    Bank of QueenslandBOQPFCapital Notes 214-05-20273.80%4.53%0.02%103.947.44%
    Bendigo BankBENPHCapital Notes15-06-20273.80%3.31%0.01%104.87.30%
    Macquarie GroupMQGPECapital Notes 520-09-20272.90%2.63%0.01%103.586.43%
    Nat Aust BankNABPHCapital Notes 517-12-20273.50%3.02%0.01%104.836.99%
    ANZ BankAN3PICapital Notes 620-03-20283.00%2.43%0.01%104.056.48%
    CBACBAPL PERLS 1515-06-20282.85%2.65%0.01%104.056.38%
    SuncorpSUNPICapital Notes 417-06-20282.90%2.69%0.01%104.16.43%
    WestpacWBCPLCapital Notes 922-09-20283.40%3.61%0.01%105.3516.99%
    Macquarie BankMBLPDCapital Notes 307-12-20282.90%2.53%0.01%104.36.39%
    Bank of QueenslandBOQPGCapital Notes 315-12-20283.40%3.20%0.01%104.496.91%
    Judo CapitalJDOPACapital Notes16-02-20296.50%4.52%0.01%112.099.51%
    ANZ BankAN3PJCapital Notes 720-03-20292.70%2.37%0.00%103.726.20%
    ChallengerCGFPDCapital Notes 425-05-20293.60%3.82%0.01%103.957.19%
    CBACBAPK PERLS 1415-06-20292.75%2.48%0.01%104.416.25%
    IAGIAGPECapital Notes 215-06-20293.50%2.72%0.01%107.56.89%
    Macquarie GroupMQGPFCapital Notes 612-09-20293.70%2.95%0.01%106.17.08%
    Nat Aust BankNABPICapital Notes 617-09-20293.15%2.60%0.01%105.66.58%
    WestpacWBCPKCapital Notes 821-09-20292.90%3.32%0.01%104.266.54%
    ANZ BankAN3PKCapital Notes 820-03-20302.75%2.31%0.00%104.396.20%
    CBACBAPM PERLS 1617-06-20303.00%2.43%0.01%105.96.41%
    SuncorpSUNPJCapital Notes 517-06-20302.80%2.53%0.01%104.656.29%
    Nat Aust BankNABPJCapital Notes 717-09-20302.80%2.51%0.01%104.86.28%
    Bendigo BankBENPiCapital Notes 213-12-20303.20%2.67%0.00%106.16.61%
    Insurance AustraliaIAGPFCapital Notes 315-12-20303.20%2.94%0.00%105.866.68%
    ANZ BankAN3PLCapital Notes 920-03-20312.90%2.32%0.00%105.356.30%
    WestpacWBCPMCapital Notes 1022-09-20313.10%2.90%0.00%106.76.59%
    Macquarie GroupMQGPGCapital Notes 715-12-20312.65%2.67%0.00%103.216.20%
    Nat Aust BankNABPKCapital Notes 817-03-20322.60%2.42%0.00%104.476.10%

  • ASX-Listed Hybrids (Non-standard)

    COMPANYCODEBOND TYPECALL DATEISSUE MARGIN (inc frank)TRADING MARGINDAYCLOSING PRICE RUNNING YIELD
    NufarmNFNGStep UpPerpetual3.90%5.35%0.01%88.28.92%
    Ramsay Health CareRHCPAPreference SharePerpetual4.85%4.58%0.01%108.018.16%