Summary-
During the week ending 7 July 2025, the listed hybrid market saw modest yield movements, largely influenced by rate expectations and broader credit sentiment. Major bank hybrids showed marginal tightening, while non-major and non-standard issues experienced mixed movements. The average major bank hybrid trading margin contracted slightly to 1.86%, reflecting continued strong demand and limited primary issuance.
Standout performers included:
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CBAPD decreased its margin to 1.74% (down 6bps), showing strong secondary market appetite.
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AN3PG saw a drop to 1.80% (down 5bps), likely supported by investor positioning ahead of expected call events.
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NABPI remained steady at 1.93%, indicating stable demand in institutional flows.
Non-Standard Hybrids
Non-standard hybrid securities showed greater dispersion in yield changes:
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MXT (Metrics Master Income Trust) yield edged down to 6.80% from 6.86%, continuing its outperformance in the credit fund space.
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NAP (NAOS Small Cap Opportunities) remained elevated at 8.50%, reflecting higher risk premiums.
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KPG Capital Note remained at 10.00%, consistent with lower liquidity and niche investor base.
Market Trends and Investor Takeaways
Investors continue to favour high-quality major bank hybrids as a yield-enhancing defensive play, with relatively low volatility. However, pockets of value persist in the non-standard and LIC hybrid space for those willing to tolerate liquidity and credit risk.
The hybrid market remains well-supported, but spreads may remain range-bound unless there’s a macro surprise or spike in issuance. Investors should monitor upcoming call dates and regulatory changes that could impact the pricing and risk of these instruments.
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% | 26.29% | 1.31% | 99.97 | 7.08% |
| AMP Group | AMPPB | Capital Notes 2 | 16/12/2025 | 4.50% | 8.27% | 0.23% | 101 | 8.20% |
| Macquarie Bank | MBLPC | Capital Notes 2 | 22/12/2025 | 4.70% | 7.64% | 0.19% | 101.049 | 8.38% |
| Challenger | CGFPC | Capital Notes 3 | 25/05/2026 | 4.60% | 5.78% | 0.10% | 102.47 | 8.25% |
| Nat Aust Bank | NABPF | Capital Notes 3 | 17/06/2026 | 4.00% | 4.65% | 0.08% | 102.099 | 7.61% |
| Suncorp | SUNPH | Capital Notes 3 | 17/06/2026 | 3.00% | 4.66% | 0.08% | 100.88 | 6.67% |
| Macquarie Group | MQGPD | Capital Notes 4 | 10/09/2026 | 4.15% | 4.17% | 0.05% | 102.5 | 7.72% |
| CBA | CBAPJ | PERLS 13 | 20/10/2026 | 2.75% | 3.80% | 0.05% | 101.05 | 6.40% |
| Latitude | LFSPA | Capital Notes | 27/10/2026 | 4.75% | 11.83% | 0.11% | 96.5 | 9.01% |
| Westpac | WBCPJ | Capital Notes 7 | 22/03/2027 | 3.40% | 4.93% | 0.05% | 102.197 | 7.13% |
| CBA | CBAPI | PERLS 12 | 20/04/2027 | 3.00% | 3.32% | 0.04% | 101.91 | 6.60% |
| Bank of Queensland | BOQPF | Capital Notes 2 | 14/05/2027 | 3.80% | 4.45% | 0.05% | 102.58 | 7.44% |
| Bendigo Bank | BENPH | Capital Notes | 15/06/2027 | 3.80% | 3.94% | 0.04% | 102.5 | 7.38% |
| Macquarie Group | MQGPE | Capital Notes 5 | 20/09/2027 | 2.90% | 3.27% | 0.03% | 101.39 | 6.51% |
| Nat Aust Bank | NABPH | Capital Notes 5 | 17/12/2027 | 3.50% | 3.33% | 0.03% | 103 | 7.04% |
| ANZ Bank | AN3PI | Capital Notes 6 | 20/03/2028 | 3.00% | 2.90% | 0.02% | 102.16 | 6.55% |
| CBA | CBAPL | PERLS 15 | 15/06/2028 | 2.85% | 3.13% | 0.02% | 101.76 | 6.46% |
| Suncorp | SUNPI | Capital Notes 4 | 17/06/2028 | 2.90% | 3.48% | 0.03% | 101.05 | 6.56% |
| Westpac | WBCPL | Capital Notes 9 | 22/09/2028 | 3.40% | 3.76% | 0.03% | 103.68 | 7.02% |
| Macquarie Bank | MBLPD | Capital Notes 3 | 7/12/2028 | 2.90% | 2.95% | 0.02% | 102.2 | 6.47% |
| Bank of Queensland | BOQPG | Capital Notes 3 | 15/12/2028 | 3.40% | 3.44% | 0.02% | 102.601 | 6.96% |
| Judo Capital | JDOPA | Capital Notes | 16/02/2029 | 6.50% | 4.00% | 0.03% | 112 | 9.37% |
| ANZ Bank | AN3PJ | Capital Notes 7 | 20/03/2029 | 2.70% | 2.87% | 0.01% | 101.39 | 6.29% |
| Challenger | CGFPD | Capital Notes 4 | 25/05/2029 | 3.60% | 3.54% | 0.02% | 103.5 | 7.14% |
| CBA | CBAPK | PERLS 14 | 15/06/2029 | 2.75% | 2.98% | 0.02% | 101.77 | 6.35% |
| IAG | IAGPE | Capital Notes 2 | 15/06/2029 | 3.50% | 3.86% | 0.02% | 103 | 7.13% |
| Macquarie Group | MQGPF | Capital Notes 6 | 12/09/2029 | 3.70% | 2.89% | 0.02% | 105.3 | 7.06% |
| Nat Aust Bank | NABPI | Capital Notes 6 | 17/09/2029 | 3.15% | 2.81% | 0.02% | 103.77 | 6.63% |
| Westpac | WBCPK | Capital Notes 8 | 21/09/2029 | 2.90% | 3.32% | 0.02% | 103.04 | 6.55% |
| ANZ Bank | AN3PK | Capital Notes 8 | 20/03/2030 | 2.75% | 2.78% | 0.01% | 101.86 | 6.31% |
| CBA | CBAPM | PERLS 16 | 17/06/2030 | 3.00% | 2.59% | 0.02% | 104.19 | 6.45% |
| Suncorp | SUNPJ | Capital Notes 5 | 17/06/2030 | 2.80% | 3.01% | 0.02% | 101.76 | 6.40% |
| Nat Aust Bank | NABPJ | Capital Notes 7 | 17/09/2030 | 2.80% | 2.74% | 0.01% | 102.801 | 6.34% |
| Bendigo Bank | BENPi | Capital Notes 2 | 13/12/2030 | 3.20% | 3.20% | 0.02% | 102.85 | 6.75% |
| Insurance Australia | IAGPF | Capital Notes 3 | 15/12/2030 | 3.20% | 3.50% | 0.01% | 102.7 | 6.83% |
| ANZ Bank | AN3PL | Capital Notes 9 | 20/03/2031 | 2.90% | 2.75% | 0.01% | 102.69 | 6.41% |
| Westpac | WBCPM | Capital Notes 10 | 22/09/2031 | 3.10% | 3.19% | 0.01% | 104.21 | 6.67% |
| Macquarie Group | MQGPG | Capital Notes 7 | 15/12/2031 | 2.65% | 2.83% | 0.01% | 101.5 | 6.25% |
| Nat Aust Bank | NABPK | Capital Notes 8 | 17/03/2032 | 2.60% | 2.45% | 0.01% | 103.26 | 6.11% |
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% | 5.42% | 0.03% | 87.2 | 9.00% |
| Ramsay Health Care | RHCPA | Preference Share | Perpetual | 4.85% | 4.74% | 0.03% | 105.6 | 8.32% |