Summary:
Australia’s top five banks Commonwealth Bank (CBA), Westpac, National Australia Bank (NAB), ANZ, and Macquarie Group remain at the forefront of the listed hybrid securities market, delivering strong returns and stability for income investors.
Major Market Highlights
Yields & Pricing
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Current running yields for major bank hybrids cluster between 6.22% and 7.75%, with most sitting in the 6.4%–7.2% range.
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Hybrids from Westpac and Macquarie are at the upper end, offering running yields above 7%.
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Issue margins on new deals from the big five banks are holding firm between 2.60%–4.70% above the reference rate. This highlights attractive compensation for investors, even as official rates remain steady.
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Trading margins have tightened modestly, now mostly inside 3.5%, reflecting increased investor demand and confidence.
Price Activity
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Hybrid securities continue to trade at a premium to face value, generally in the $102.5–$106.1 range.
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Price volatility has been subdued, with average daily price moves between -0.2% and -0.8%, reinforcing the sector’s resilience.
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An exception remains Westpac Capital Notes 5, still displaying a very high trading margin due to an apparent data anomaly.
Active Issuers
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CBA: The PERLS series (12–16) are actively traded, with yields in the 6.4%–6.7% band.
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Westpac: Capital Notes 5, 7, 8, 9, and 10, covering yields from 6.67%–7.24%.
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NAB: Multiple issues (Capital Notes 3, 5, 6, 7, 8), with running yields mostly above 6.7%.
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ANZ: Four series (Capital Notes 6–9), yielding 6.37%–6.61%.
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Macquarie: Capital Notes 2, 4, 5, 6, and 7, yields span 6.32%–7.75%.
July 2025 Changes & Trends
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Tighter trading margins: Investor appetite has pushed average margins down, narrowing spreads compared to last quarter.
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Yields stable to higher: Recent major bank hybrids launched with slightly higher or steady yields, reflecting a plateau in cash rates.
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Low volatility: Price changes remain minimal, supporting continued steady demand and market confidence.
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Steady issuance: Ongoing refinancing and new hybrid launches by the big banks deliver liquidity and product range for investors.
ASX-Listed Hybrids
COMPANY CODE HYBRID TYPE MATURITY/
CALL
DATEMARGIN
INCL. CREDITSTRADING
MARGINDAY
CHANGEDAY
CLOSERUNNING
YIELD**Westpac WBCPH Capital Notes 5 22/09/2025 3.20% 40.95% -0.26% 100.1 7.24% AMP Group AMPPB Capital Notes 2 16/12/2025 4.50% 8.10% -2.14% 101.78 8.31% Macquarie Bank MBLPC Capital Notes 2 22/12/2025 4.70% 7.88% -1.42% 101.601 8.50% Challenger CGFPC Capital Notes 3 25/05/2026 4.60% 5.36% -1.23% 103.42 8.34% Nat Aust Bank NABPF Capital Notes 3 17/06/2026 4.00% 4.49% -0.81% 102.78 7.73% Suncorp SUNPH Capital Notes 3 17/06/2026 3.00% 4.69% -0.63% 101.41 6.79% Macquarie Group MQGPD Capital Notes 4 10/09/2026 4.15% 2.93% -1.66% 104.24 7.75% CBA CBAPJ PERLS 13 20/10/2026 2.75% 3.53% -0.70% 101.85 6.51% Latitude LFSPA Capital Notes 27/10/2026 4.75% 10.93% -1.80% 98.3 9.03% Westpac WBCPJ Capital Notes 7 22/03/2027 3.40% 4.62% -0.70% 103.22 7.22% CBA CBAPI PERLS 12 20/04/2027 3.00% 3.17% -0.44% 102.61 6.71% Bank of Queensland BOQPF Capital Notes 2 14/05/2027 3.80% 4.59% -0.22% 102.95 7.58% Bendigo Bank BENPH Capital Notes 15/06/2027 3.80% 3.62% -0.63% 103.55 7.47% Macquarie Group MQGPE Capital Notes 5 20/09/2027 2.90% 2.93% -0.56% 102.44 6.60% Nat Aust Bank NABPH Capital Notes 5 17/12/2027 3.50% 2.98% -0.59% 104.22 7.11% ANZ Bank AN3PI Capital Notes 6 20/03/2028 3.00% 2.46% -0.59% 103.5 6.61% CBA CBAPL PERLS 15 15/06/2028 2.85% 2.48% -0.84% 103.81 6.48% Suncorp SUNPI Capital Notes 4 17/06/2028 2.90% 3.04% -0.64% 102.59 6.61% Westpac WBCPL Capital Notes 9 22/09/2028 3.40% 3.47% -0.49% 104.94 7.10% Macquarie Bank MBLPD Capital Notes 3 7/12/2028 2.90% 2.94% -0.14% 102.602 6.59% Bank of Queensland BOQPG Capital Notes 3 15/12/2028 3.40% 3.14% -0.48% 103.92 7.03% Judo Capital JDOPA Capital Notes 16/02/2029 6.50% 4.02% -0.18% 112.55 9.50% ANZ Bank AN3PJ Capital Notes 7 20/03/2029 2.70% 2.63% -0.36% 102.455 6.37% Challenger CGFPD Capital Notes 4 25/05/2029 3.60% 3.23% -0.48% 104.95 7.20% CBA CBAPK PERLS 14 15/06/2029 2.75% 2.71% -0.41% 103.04 6.43% IAG IAGPE Capital Notes 2 15/06/2029 3.50% 3.41% -0.59% 104.78 7.16% Macquarie Group MQGPF Capital Notes 6 12/09/2029 3.70% 2.80% -0.20% 105.98 7.17% Nat Aust Bank NABPI Capital Notes 6 17/09/2029 3.15% 2.73% -0.22% 104.5 6.74% Westpac WBCPK Capital Notes 8 21/09/2029 2.90% 3.30% -0.17% 103.6 6.67% ANZ Bank AN3PK Capital Notes 8 20/03/2030 2.75% 2.65% -0.23% 102.7 6.41% CBA CBAPM PERLS 16 17/06/2030 3.00% 2.55% -0.16% 104.8 6.57% Suncorp SUNPJ Capital Notes 5 17/06/2030 2.80% 2.80% -0.33% 103 6.48% Nat Aust Bank NABPJ Capital Notes 7 17/09/2030 2.80% 2.55% -0.31% 104 6.42% Bendigo Bank BENPi Capital Notes 2 13/12/2030 3.20% 2.80% -0.51% 104.9 6.77% Insurance Australia IAGPF Capital Notes 3 15/12/2030 3.20% 3.20% -0.40% 104.277 6.87% ANZ Bank AN3PL Capital Notes 9 20/03/2031 2.90% 2.53% -0.30% 103.958 6.48% Westpac WBCPM Capital Notes 10 22/09/2031 3.10% 2.87% -0.43% 106.1 6.71% Macquarie Group MQGPG Capital Notes 7 15/12/2031 2.65% 2.61% -0.31% 102.9 6.32% Nat Aust Bank NABPK Capital Notes 8 17/03/2032 2.60% 2.40% -0.13% 103.91 6.22% ASX-Listed Hybrids (Non-standard)
COMPANY CODE BOND TYPE CALL DATE ISSUE MARGIN (inc frank) TRADING MARGIN DAY CLOSING PRICE RUNNING YIELD Nufarm NFNG Step Up Perpetual 3.90% 5.24% -0.14% 88.4 8.94% Ramsay Health Care RHCPA Preference Share Perpetual 4.85% 4.49% -0.19% 107.9 8.20%