7 August 2025

Summary:

Hybrid securities from major Australian banks remained relatively stable over the week, with modest movements in trading margins and prices across the sector. As shown in the accompanying chart, the margin to BBSW continues to cluster mostly between 2.25% and 3.25%, with a few outliers.

Chart Insights:

• Westpac securities such as WBCPK and WBCPM are trading at the highest margins, over 3.0%, suggesting either heightened risk premium or attractive yields for investors.

• CBA hybrids such as CBAPJ and CBAPI hover in the 2.75%–3.25% range, offering relatively consistent premium over the bank bill swap rate.

• ANZ and NAB hybrids, including AN3PJ, NABPI, and NABPK, tend to sit lower in the margin spectrum, around 2.25%–2.50%.

These spreads reflect investor sentiment regarding each bank’s credit risk, call date proximity, and the overall appetite for yield in a still uncertain macroeconomic environment.

Market Data Highlights (from ASX-listed Hybrids Table):

• Top running yields are seen in non-major banks and diversified financial institutions, including Macquarie’s MBLPC (8.44%) and AMP’s AMPPB (8.26%).

• Challenger’s CGFPC also stands out with a running yield of 8.21%, despite a notable daily price drop of -1.41%.

• Among the major banks:

  • WBCPH offers a 7.19% running yield with a tight trading margin of 1.85%, reflecting its nearing call date (Sep 2025).

  • NABPF and CBAPG continue to offer yields around 7.4%, remaining attractive amid stable trading.

 

• ASX-Listed Hybrids

  COMPANY	CODE	HYBRID TYPE	MATURITY/ CALL DATE	MARGIN INCL. CREDITS	TRADING MARGIN	DAY CHANGE	DAY CLOSE	RUNNING YIELD**
  Westpac	WBCPH	Capital Notes 5	22/09/2025	3.20%	48.25%	1.85%	100.31	7.19%
  AMP Group	AMPPB	Capital Notes 2	16/12/2025	4.50%	8.07%	-0.03%	102.04	8.26%
  Macquarie Bank	MBLPC	Capital Notes 2	22/12/2025	4.70%	7.39%	-0.01%	102	8.44%
  Challenger	CGFPC	Capital Notes 3	25/05/2026	4.60%	3.82%	-1.41%	104.78	8.21%
  Nat Aust Bank	NABPF	Capital Notes 3	17/06/2026	4.00%	4.26%	-0.41%	103.15	7.67%
  Suncorp	SUNPH	Capital Notes 3	17/06/2026	3.00%	4.18%	-0.22%	102	6.72%
  Macquarie Group	MQGPD	Capital Notes 4	10/09/2026	4.15%	3.53%	-0.06%	103.75	7.76%
  CBA	CBAPJ	PERLS 13	20/10/2026	2.75%	3.34%	-0.04%	102.22	6.45%
  Latitude	LFSPA	Capital Notes	27/10/2026	4.75%	11.12%	0.54%	98.41	8.99%
  Westpac	WBCPJ	Capital Notes 7	22/03/2027	3.40%	4.73%	0.23%	103.25	7.19%
  CBA	CBAPI	PERLS 12	20/04/2027	3.00%	2.89%	-0.15%	103.2	6.64%
  Bank of Queensland	BOQPF	Capital Notes 2	14/05/2027	3.80%	4.22%	-0.19%	103.72	7.50%
  Bendigo Bank	BENPH	Capital Notes	15/06/2027	3.80%	3.21%	-0.23%	104.4	7.38%
  Macquarie Group	MQGPE	Capital Notes 5	20/09/2027	2.90%	2.60%	0.12%	103.2	6.52%
  Nat Aust Bank	NABPH	Capital Notes 5	17/12/2027	3.50%	2.96%	-0.19%	104.4	7.07%
  ANZ Bank	AN3PI	Capital Notes 6	20/03/2028	3.00%	2.43%	-0.18%	103.68	6.57%
  CBA	CBAPL	PERLS 15	15/06/2028	2.85%	2.81%	0.00%	103.15	6.49%
  Suncorp	SUNPI	Capital Notes 4	17/06/2028	2.90%	3.03%	0.06%	102.76	6.57%
  Westpac	WBCPL	Capital Notes 9	22/09/2028	3.40%	3.59%	0.15%	104.82	7.08%
  Macquarie Bank	MBLPD	Capital Notes 3	7/12/2028	2.90%	2.60%	-0.10%	103.67	6.49%
  Bank of Queensland	BOQPG	Capital Notes 3	15/12/2028	3.40%	3.05%	-0.03%	104.35	6.98%
  Judo Capital	JDOPA	Capital Notes	16/02/2029	6.50%	4.15%	0.39%	112.39	9.50%
  ANZ Bank	AN3PJ	Capital Notes 7	20/03/2029	2.70%	2.42%	-0.09%	103.2	6.29%
  Challenger	CGFPD	Capital Notes 4	25/05/2029	3.60%	3.11%	-0.16%	105.48	7.13%
  CBA	CBAPK	PERLS 14	15/06/2029	2.75%	2.47%	-0.16%	103.96	6.34%
  IAG	IAGPE	Capital Notes 2	15/06/2029	3.50%	3.36%	0.20%	105.07	7.11%
  Macquarie Group	MQGPF	Capital Notes 6	12/09/2029	3.70%	2.64%	-0.05%	106.64	7.09%
  Nat Aust Bank	NABPI	Capital Notes 6	17/09/2029	3.15%	2.52%	-0.06%	105.35	6.65%
  Westpac	WBCPK	Capital Notes 8	21/09/2029	2.90%	3.11%	-0.02%	104.38	6.59%
  ANZ Bank	AN3PK	Capital Notes 8	20/03/2030	2.75%	2.23%	-0.02%	104.32	6.28%
  CBA	CBAPM	PERLS 16	17/06/2030	3.00%	2.26%	0.34%	106.01	6.46%
  Suncorp	SUNPJ	Capital Notes 5	17/06/2030	2.80%	2.72%	-0.01%	103.42	6.42%
  Nat Aust Bank	NABPJ	Capital Notes 7	17/09/2030	2.80%	2.34%	0.05%	104.98	6.33%
  Bendigo Bank	BENPi	Capital Notes 2	13/12/2030	3.20%	2.79%	-0.05%	105.1	6.73%
  Insurance Australia	IAGPF	Capital Notes 3	15/12/2030	3.20%	3.07%	-0.06%	104.9	6.80%
  ANZ Bank	AN3PL	Capital Notes 9	20/03/2031	2.90%	2.34%	-0.01%	104.9	6.39%
  Westpac	WBCPM	Capital Notes 10	22/09/2031	3.10%	2.93%	0.00%	106.022	6.68%
  Macquarie Group	MQGPG	Capital Notes 7	15/12/2031	2.65%	2.53%	-0.04%	103.38	6.25%
  Nat Aust Bank	NABPK	Capital Notes 8	17/03/2032	2.60%	2.35%	0.00%	104.3	6.17%

• 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%	5.12%	0.03%	90	8.79%
  Ramsay Health Care	RHCPA	Preference Share	Perpetual	4.85%	4.52%	-0.01%	108.2	8.18%