30 July 2025

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

  • Current running yields for major bank hybrids cluster between 6.22% and 7.75%, with most sitting in the 6.4%–7.2% range.

  • Hybrids from Westpac and Macquarie are at the upper end, offering running yields above 7%.

  • 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.

  • Trading margins have tightened modestly, now mostly inside 3.5%, reflecting increased investor demand and confidence.

Price Activity

  • Hybrid securities continue to trade at a premium to face value, generally in the $102.5–$106.1 range.

  • Price volatility has been subdued, with average daily price moves between -0.2% and -0.8%, reinforcing the sector’s resilience.

  • An exception remains Westpac Capital Notes 5, still displaying a very high trading margin due to an apparent data anomaly.

Active Issuers

  • CBA: The PERLS series (12–16) are actively traded, with yields in the 6.4%–6.7% band.

  • Westpac: Capital Notes 5, 7, 8, 9, and 10, covering yields from 6.67%–7.24%.

  • NAB: Multiple issues (Capital Notes 3, 5, 6, 7, 8), with running yields mostly above 6.7%.

  • ANZ: Four series (Capital Notes 6–9), yielding 6.37%–6.61%.

  • Macquarie: Capital Notes 2, 4, 5, 6, and 7, yields span 6.32%–7.75%.

July 2025 Changes & Trends

  • Tighter trading margins: Investor appetite has pushed average margins down, narrowing spreads compared to last quarter.

  • Yields stable to higher: Recent major bank hybrids launched with slightly higher or steady yields, reflecting a plateau in cash rates.

  • Low volatility: Price changes remain minimal, supporting continued steady demand and market confidence.

  • Steady issuance: Ongoing refinancing and new hybrid launches by the big banks deliver liquidity and product range for investors.

major bank australia

 

 

  • ASX-Listed Hybrids

    COMPANYCODEHYBRID TYPEMATURITY/
    CALL
    DATE
    MARGIN
    INCL. CREDITS
    TRADING
    MARGIN
    DAY
    CHANGE
    DAY
    CLOSE
    RUNNING
    YIELD**
    WestpacWBCPHCapital Notes 522/09/20253.20%40.95%-0.26%100.17.24%
    AMP GroupAMPPBCapital Notes 216/12/20254.50%8.10%-2.14%101.788.31%
    Macquarie BankMBLPCCapital Notes 222/12/20254.70%7.88%-1.42%101.6018.50%
    ChallengerCGFPCCapital Notes 325/05/20264.60%5.36%-1.23%103.428.34%
    Nat Aust BankNABPFCapital Notes 317/06/20264.00%4.49%-0.81%102.787.73%
    SuncorpSUNPHCapital Notes 317/06/20263.00%4.69%-0.63%101.416.79%
    Macquarie GroupMQGPDCapital Notes 410/09/20264.15%2.93%-1.66%104.247.75%
    CBACBAPJ PERLS 1320/10/20262.75%3.53%-0.70%101.856.51%
    LatitudeLFSPACapital Notes27/10/20264.75%10.93%-1.80%98.39.03%
    WestpacWBCPJCapital Notes 722/03/20273.40%4.62%-0.70%103.227.22%
    CBACBAPI PERLS 1220/04/20273.00%3.17%-0.44%102.616.71%
    Bank of QueenslandBOQPFCapital Notes 214/05/20273.80%4.59%-0.22%102.957.58%
    Bendigo BankBENPHCapital Notes15/06/20273.80%3.62%-0.63%103.557.47%
    Macquarie GroupMQGPECapital Notes 520/09/20272.90%2.93%-0.56%102.446.60%
    Nat Aust BankNABPHCapital Notes 517/12/20273.50%2.98%-0.59%104.227.11%
    ANZ BankAN3PICapital Notes 620/03/20283.00%2.46%-0.59%103.56.61%
    CBACBAPL PERLS 1515/06/20282.85%2.48%-0.84%103.816.48%
    SuncorpSUNPICapital Notes 417/06/20282.90%3.04%-0.64%102.596.61%
    WestpacWBCPLCapital Notes 922/09/20283.40%3.47%-0.49%104.947.10%
    Macquarie BankMBLPDCapital Notes 37/12/20282.90%2.94%-0.14%102.6026.59%
    Bank of QueenslandBOQPGCapital Notes 315/12/20283.40%3.14%-0.48%103.927.03%
    Judo CapitalJDOPACapital Notes16/02/20296.50%4.02%-0.18%112.559.50%
    ANZ BankAN3PJCapital Notes 720/03/20292.70%2.63%-0.36%102.4556.37%
    ChallengerCGFPDCapital Notes 425/05/20293.60%3.23%-0.48%104.957.20%
    CBACBAPK PERLS 1415/06/20292.75%2.71%-0.41%103.046.43%
    IAGIAGPECapital Notes 215/06/20293.50%3.41%-0.59%104.787.16%
    Macquarie GroupMQGPFCapital Notes 612/09/20293.70%2.80%-0.20%105.987.17%
    Nat Aust BankNABPICapital Notes 617/09/20293.15%2.73%-0.22%104.56.74%
    WestpacWBCPKCapital Notes 821/09/20292.90%3.30%-0.17%103.66.67%
    ANZ BankAN3PKCapital Notes 820/03/20302.75%2.65%-0.23%102.76.41%
    CBACBAPM PERLS 1617/06/20303.00%2.55%-0.16%104.86.57%
    SuncorpSUNPJCapital Notes 517/06/20302.80%2.80%-0.33%1036.48%
    Nat Aust BankNABPJCapital Notes 717/09/20302.80%2.55%-0.31%1046.42%
    Bendigo BankBENPiCapital Notes 213/12/20303.20%2.80%-0.51%104.96.77%
    Insurance AustraliaIAGPFCapital Notes 315/12/20303.20%3.20%-0.40%104.2776.87%
    ANZ BankAN3PLCapital Notes 920/03/20312.90%2.53%-0.30%103.9586.48%
    WestpacWBCPMCapital Notes 1022/09/20313.10%2.87%-0.43%106.16.71%
    Macquarie GroupMQGPGCapital Notes 715/12/20312.65%2.61%-0.31%102.96.32%
    Nat Aust BankNABPKCapital Notes 817/03/20322.60%2.40%-0.13%103.916.22%
  • ASX-Listed Hybrids (Non-standard)

    COMPANYCODEBOND TYPECALL DATEISSUE MARGIN (inc frank)TRADING MARGINDAYCLOSING PRICE RUNNING YIELD
    NufarmNFNGStep UpPerpetual3.90%5.24%-0.14%88.48.94%
    Ramsay Health CareRHCPAPreference SharePerpetual4.85%4.49%-0.19%107.98.20%