4 August 2025

Summary:

Market Highlights

Australian bank hybrids continued to offer steady income returns this week, with performance across major issuers remaining broadly consistent. Investor appetite for income-generating assets held firm, supported by attractive running yields and relatively stable trading margins.

Market Highlights

  • Yield Range: Most bank-issued hybrids delivered running yields between 6.30% and 7.20%, with standout performers including:
    • Westpac Capital Notes 5 (WBCPH) – 7.22%
    • NAB Capital Notes 5 (NABPH) – 7.08%
    • CBA PERLS 14 (CBAPK) – 6.37%
  • Trading Margins: Margins varied widely, from 2.34% (CBA PERLS 16) to 4.75% (Westpac Capital Notes 7), reflecting mixed sentiment around duration and credit risk.
  • Price Action: Daily movements were modest. Notable shifts included:
    • Macquarie Bank (MBLPC) – down 0.54%
    • Challenger (CGFPC) – down 0.91%
    • AMP Group (AMPPB) – up 0.42%

Issuer Performance

  • Major Banks: Hybrids from CBA, NAB, ANZ, and Westpac traded near or slightly above par, with consistent yields and minimal volatility.
  • Regional & Non-Bank Issuers:
    • Judo Capital (JDOPA) led the pack with a 9.47% running yield, supported by strong margin pricing.
    • Latitude (LFSPA) also impressed with a 9.02% yield, appealing to investors seeking higher returns.

  • ASX-Listed Hybrids

    COMPANYCODEHYBRID TYPEMATURITY/
    CALL
    DATE    		MARGIN
    INCL. CREDITS    		TRADING
    MARGIN    		DAY
    CHANGE    		DAY
    CLOSE    		RUNNING
    YIELD**
    WestpacWBCPHCapital Notes 522/09/20253.20%44.98%3.45%100.257.22%
    AMP GroupAMPPBCapital Notes 216/12/20254.50%8.35%0.42%101.858.30%
    Macquarie BankMBLPCCapital Notes 222/12/20254.70%7.25%-0.54%101.978.46%
    ChallengerCGFPCCapital Notes 325/05/20264.60%4.37%-0.91%104.38.26%
    Nat Aust BankNABPFCapital Notes 317/06/20264.00%4.55%-0.15%102.857.72%
    SuncorpSUNPHCapital Notes 317/06/20263.00%4.21%-0.18%101.916.75%
    Macquarie GroupMQGPDCapital Notes 410/09/20264.15%3.48%-0.17%103.757.77%
    CBACBAPJ PERLS 1320/10/20262.75%3.41%-0.11%102.086.48%
    LatitudeLFSPACapital Notes27/10/20264.75%11.12%0.42%98.39.02%
    WestpacWBCPJCapital Notes 722/03/20273.40%4.75%0.10%103.167.22%
    CBACBAPI PERLS 1220/04/20273.00%3.06%-0.05%102.886.68%
    Bank of QueenslandBOQPFCapital Notes 214/05/20273.80%4.18%-0.41%103.717.52%
    Bendigo BankBENPHCapital Notes15/06/20273.80%3.36%-0.16%104.097.42%
    Macquarie GroupMQGPECapital Notes 520/09/20272.90%2.43%-0.49%103.476.52%
    Nat Aust BankNABPHCapital Notes 517/12/20273.50%2.84%-0.02%104.67.08%
    ANZ BankAN3PICapital Notes 620/03/20283.00%2.56%0.04%103.356.61%
    CBACBAPL PERLS 1515/06/20282.85%2.85%-0.02%1036.52%
    SuncorpSUNPICapital Notes 417/06/20282.90%2.91%-0.18%1036.57%
    WestpacWBCPLCapital Notes 922/09/20283.40%3.61%0.07%104.697.11%
    Macquarie BankMBLPDCapital Notes 37/12/20282.90%2.71%-0.05%103.326.54%
    Bank of QueenslandBOQPGCapital Notes 315/12/20283.40%3.10%-0.01%104.157.01%
    Judo CapitalJDOPACapital Notes16/02/20296.50%3.97%0.04%112.819.47%
    ANZ BankAN3PJCapital Notes 720/03/20292.70%2.44%-0.14%103.096.32%
    ChallengerCGFPDCapital Notes 425/05/20293.60%3.12%-0.14%105.397.16%
    CBACBAPK PERLS 1415/06/20292.75%2.50%-0.09%103.86.37%
    IAGIAGPECapital Notes 215/06/20293.50%3.06%-0.37%105.957.07%
    Macquarie GroupMQGPFCapital Notes 612/09/20293.70%2.76%0.00%106.217.14%
    Nat Aust BankNABPICapital Notes 617/09/20293.15%2.58%-0.06%105.096.69%
    WestpacWBCPKCapital Notes 821/09/20292.90%3.26%0.00%103.846.64%
    ANZ BankAN3PKCapital Notes 820/03/20302.75%2.43%-0.09%103.556.34%
    CBACBAPM PERLS 1617/06/20303.00%2.17%-0.17%106.316.46%
    SuncorpSUNPJCapital Notes 517/06/20302.80%2.71%-0.06%103.416.44%
    Nat Aust BankNABPJCapital Notes 717/09/20302.80%2.34%-0.06%104.96.35%
    Bendigo BankBENPiCapital Notes 213/12/20303.20%2.85%0.00%104.86.77%
    Insurance AustraliaIAGPFCapital Notes 315/12/20303.20%3.09%-0.10%104.786.83%
    ANZ BankAN3PLCapital Notes 920/03/20312.90%2.34%0.00%104.856.41%
    WestpacWBCPMCapital Notes 1022/09/20313.10%2.88%-0.03%106.196.69%
    Macquarie GroupMQGPGCapital Notes 715/12/20312.65%2.57%-0.06%103.156.29%
    Nat Aust BankNABPKCapital Notes 817/03/20322.60%2.41%-0.08%103.966.21%

  • ASX-Listed Hybrids (Non-standard)

    COMPANYCODEBOND TYPECALL DATEISSUE MARGIN (inc frank)TRADING MARGINDAYCLOSING PRICE RUNNING YIELD
    NufarmNFNGStep UpPerpetual3.90%5.30%0.03%88.38.99%
    Ramsay Health CareRHCPAPreference SharePerpetual4.85%4.56%0.03%107.628.25%