4 September 2025

Summary –

The ASX-listed hybrids market reflects a diverse universe of income-producing securities, blending standard bank-issued capital notes with a handful of non-standard corporate hybrids as of September 4, 2025.These hybrids appeal to both income-seeking and tactical investors by offering enhanced yields compared to term deposits and senior debt, alongside unique structural features and varying degrees of issuer risk.

Standard Hybrids

Most ASX-listed hybrids comprise capital notes and preference shares from major financial institutions such as Westpac, CBA, NAB, Macquarie, and others.Maturities stretch from late 2025 to 2032, catering to a broad set of investment horizons.Deal margins generally range 2.6%–4.75%, with running yields clustered between 6% and 8%, aligning with the asset’s reputation for steady income and low default risk relative to equities.Isolated outliers (e.g., Judo Capital’s high-yielding note at 9.52%) exemplify situations where investors can access substantial premiums for added risk or less familiar issuers.[2] Most trading margins and day-to-day price shifts remain contained, though occasional anomalies (such as Westpac Capital Notes 5’s 180% trading margin) warrant further investigation and caution.[2]

Non-Standard Hybrids

Featuring just two entries—Nufarm (NFNG) and Ramsay Health Care (RHCPA)—the non-standard section highlights perpetual securities outside the mainstream banking sector.Nufarm’s Step Up bond is distinguished by its potential for coupon escalation, while Ramsay’s preference share maintains a fixed structure.Yields are notably elevated at 8.93% and 8.15%, with trading margins reflecting a premium over most bank hybrids due to greater perceived credit and structural risk.Minimal intraday price movement suggests stable valuation, but also potentially thin liquidity.These hybrids suit sophisticated investors seeking yield differentiation, but require close attention to issuer fundamentals and perpetual risk.

Strategic Insights

  • Yield Comparison: Non-standard hybrids deliver higher yields but come with issuer-specific and structural uncertainties relative to standard bank hybrids.
  • Issuer Landscape: Standard hybrids largely represent the banking sector, while non-standard options offer exposure to non-financial corporates.
  • Risk Gradient: Trading margins for Nufarm and Ramsay are noticeably higher than most mainstream hybrids, highlighting market-pricing for risk.
  • Investor Takeaway: Standard ASX hybrids are better suited for income-focused, risk-moderate investors, while non-standard hybrids may reward risk-tolerant strategies with substantial yield.

The ASX-listed hybrids universe continues to offer a robust spectrum of risk and return, and the inclusion of both standard and non-standard varieties allows investors to calibrate exposures according to market conditions and individual preferences.[1][2]

 

  • ASX-Listed Hybrids

    COMPANYCODEHYBRID TYPEMATURITY/
    CALL
    DATE    		MARGIN
    INCL. CREDITS    		TRADING
    MARGIN    		DAY
    CHANGE    		DAY
    CLOSE    		RUNNING
    YIELD**
    WestpacWBCPHCapital Notes 522/09/20253.20%180.02%12.34%100.567.12%
    AMP GroupAMPPBCapital Notes 216/12/20254.50%10.43%0.41%102.298.20%
    Macquarie BankMBLPCCapital Notes 222/12/20254.70%9.18%0.61%102.268.38%
    ChallengerCGFPCCapital Notes 325/05/20264.60%8.59%-0.34%102.258.39%
    Nat Aust BankNABPFCapital Notes 317/06/20264.00%4.66%-0.25%103.57.60%
    SuncorpSUNPHCapital Notes 317/06/20263.00%6.73%1.87%100.8066.75%
    Macquarie GroupMQGPDCapital Notes 410/09/20264.15%4.18%-0.88%103.647.72%
    CBACBAPJ PERLS 1320/10/20262.75%3.15%-0.04%102.996.34%
    LatitudeLFSPACapital Notes27/10/20264.75%11.97%-0.36%98.688.94%
    WestpacWBCPJCapital Notes 722/03/20273.40%4.87%0.02%103.757.11%
    CBACBAPI PERLS 1220/04/20273.00%2.95%-0.29%103.656.56%
    Bank of QueenslandBOQPFCapital Notes 214/05/20273.80%4.81%0.28%103.557.47%
    Bendigo BankBENPHCapital Notes15/06/20273.80%4.46%1.16%103.017.44%
    Macquarie GroupMQGPECapital Notes 520/09/20272.90%3.35%0.72%102.36.52%
    Nat Aust BankNABPHCapital Notes 517/12/20273.50%2.99%-0.02%104.96.99%
    ANZ BankAN3PICapital Notes 620/03/20283.00%2.51%0.07%103.96.49%
    CBACBAPL PERLS 1515/06/20282.85%2.87%0.22%103.556.41%
    SuncorpSUNPICapital Notes 417/06/20282.90%2.81%0.12%103.836.45%
    WestpacWBCPLCapital Notes 922/09/20283.40%3.61%0.00%105.386.99%
    Macquarie BankMBLPDCapital Notes 37/12/20282.90%3.12%0.59%102.736.49%
    Bank of QueenslandBOQPGCapital Notes 315/12/20283.40%3.33%0.14%104.146.94%
    Judo CapitalJDOPACapital Notes16/02/20296.50%4.57%0.04%1129.52%
    ANZ BankAN3PJCapital Notes 720/03/20292.70%2.53%0.17%103.2416.23%
    ChallengerCGFPDCapital Notes 425/05/20293.60%3.57%-0.25%104.697.14%
    CBACBAPK PERLS 1415/06/20292.75%2.56%0.08%104.186.27%
    IAGIAGPECapital Notes 215/06/20293.50%3.59%0.87%104.97.07%
    Macquarie GroupMQGPFCapital Notes 612/09/20293.70%3.03%0.08%105.867.10%
    Nat Aust BankNABPICapital Notes 617/09/20293.15%2.62%0.02%105.556.59%
    WestpacWBCPKCapital Notes 821/09/20292.90%3.28%-0.04%104.426.53%
    ANZ BankAN3PKCapital Notes 820/03/20302.75%2.42%0.11%1046.23%
    CBACBAPM PERLS 1617/06/20303.00%2.35%-0.08%106.26.40%
    SuncorpSUNPJCapital Notes 517/06/20302.80%2.79%0.26%103.76.35%
    Nat Aust BankNABPJCapital Notes 717/09/20302.80%2.32%-0.19%105.566.24%
    Bendigo BankBENPiCapital Notes 213/12/20303.20%3.08%0.41%104.516.71%
    Insurance AustraliaIAGPFCapital Notes 315/12/20303.20%3.08%0.15%105.36.71%
    ANZ BankAN3PLCapital Notes 920/03/20312.90%2.39%0.07%105.086.31%
    WestpacWBCPMCapital Notes 1022/09/20313.10%2.93%0.03%106.576.60%
    Macquarie GroupMQGPGCapital Notes 715/12/20312.65%2.75%0.08%102.856.23%
    Nat Aust BankNABPKCapital Notes 817/03/20322.60%2.31%-0.11%1056.07%

  • ASX-Listed Hybrids (Non-standard)

    COMPANYCODEBOND TYPECALL DATEISSUE MARGIN (inc frank)TRADING MARGINDAYCLOSING PRICE RUNNING YIELD
    NufarmNFNGStep UpPerpetual3.90%5.35%0.01%88.38.93%
    Ramsay Health CareRHCPAPreference SharePerpetual4.85%4.58%-0.01%108.258.15%