Daily

15 July 2025

Summary:

The hybrid securities market remains a dynamic space for income-seeking investors, with issuer-specific trends offering valuable clues about risk appetite, pricing behavior, and regulatory impact.

Among bank-issued hybrids, Judo Capital’s JDOPA stands out with the highest running yield in the market at 9.52%, supported by strong demand and relatively stable pricing. Its elevated issue margin and short call timeline suggest confidence in its credit profile, while also catering to investors seeking high income in a low-volatility, high-rate environment.

Latitude’s LFSPA follows closely with a running yield of 9.18%, though its trading margin of 12.12% signals investor caution. The discount pricing and wide margin reflect a market pricing in issuer-specific risk, diverging from the pricing behavior of major bank hybrids.

The Big Four banks—CBA, ANZ, NAB, and Westpac— continue to anchor the listed hybrid market with yields ranging from 6.4% to 7.3%, depending on structure, call dates, and franking credits. These securities remain favored for their stability and liquidity, although recent data shows a trend toward yield compression, especially in longer-dated issues.

Notably, Westpac’s WBCPH, with a call date in September 2025, is trading at a margin of 30.45%, reflecting the typical premium as hybrids approach their scheduled call. This sharp uplift provides short-term yield opportunities but is a reminder of the reinvestment risk facing investors when securities mature or are called early.

Outside traditional bank issuers, corporate hybrids continue to attract attention. Nufarm’s NFNG and Ramsay Health Care’s RHCPA, both perpetual and structurally complex, are offering running yields of 9.04% and 8.35% respectively. These securities diversify hybrid exposure beyond the banking sector but carry added complexity due to their perpetual nature and call optionality.

Looking ahead, APRA’s 2032 hybrid phase-out remains a long-term structural shift. As issuers gradually move toward Tier 2 subordinated debt to meet regulatory requirements, investors can expect reduced supply of traditional hybrids and potentially more demand-driven price firming in the coming years.

For now, the hybrid market continues to offer fertile ground for yield-focused investors. Issuer differentiation and margin spreads are creating tactical opportunities across the risk spectrum. YieldReport will continue monitoring these developments to help investors navigate this evolving segment with clarity and confidence.

 

S&P/ASX 200 Banks

  • ASX-Listed Hybrids

    COMPANYCODEHYBRID TYPEMATURITY/
    CALL
    DATE    		MARGIN
    INCL. CREDITS    		TRADING
    MARGIN    		DAY
    CHANGE    		DAY
    CLOSE    		RUNNING
    YIELD**
    WestpacWBCPHCapital Notes 522/09/20253.20%30.45%0.58%99.977.23%
    AMP GroupAMPPBCapital Notes 216/12/20254.50%8.92%0.08%1018.36%
    Macquarie BankMBLPCCapital Notes 222/12/20254.70%8.20%0.07%101.0498.53%
    ChallengerCGFPCCapital Notes 325/05/20264.60%6.07%0.04%102.478.40%
    Nat Aust BankNABPFCapital Notes 317/06/20264.00%4.88%0.03%102.0997.77%
    SuncorpSUNPHCapital Notes 317/06/20263.00%4.89%0.03%100.886.82%
    Macquarie GroupMQGPDCapital Notes 410/09/20264.15%4.32%0.02%102.57.87%
    CBACBAPJ PERLS 1320/10/20262.75%3.95%0.02%101.056.55%
    LatitudeLFSPACapital Notes27/10/20264.75%12.16%0.04%96.59.18%
    WestpacWBCPJCapital Notes 722/03/20273.40%5.07%0.02%102.1977.28%
    CBACBAPI PERLS 1220/04/20273.00%3.43%0.01%101.916.75%
    Bank of QueenslandBOQPFCapital Notes 214/05/20273.80%4.58%0.02%102.587.59%
    Bendigo BankBENPHCapital Notes15/06/20273.80%4.05%0.01%102.57.53%
    Macquarie GroupMQGPECapital Notes 520/09/20272.90%3.36%0.01%101.396.66%
    Nat Aust BankNABPHCapital Notes 517/12/20273.50%3.42%0.01%1037.19%
    ANZ BankAN3PICapital Notes 620/03/20283.00%2.95%0.01%102.166.69%
    CBACBAPL PERLS 1515/06/20282.85%3.20%0.01%101.766.61%
    SuncorpSUNPICapital Notes 417/06/20282.90%3.56%0.01%101.056.71%
    WestpacWBCPLCapital Notes 922/09/20283.40%3.84%0.01%103.687.17%
    Macquarie BankMBLPDCapital Notes 37/12/20282.90%3.00%0.01%102.26.62%
    Bank of QueenslandBOQPGCapital Notes 315/12/20283.40%3.51%0.01%102.6017.11%
    Judo CapitalJDOPACapital Notes16/02/20296.50%4.07%0.01%1129.52%
    ANZ BankAN3PJCapital Notes 720/03/20292.70%2.92%0.00%101.396.44%
    ChallengerCGFPDCapital Notes 425/05/20293.60%3.60%0.01%103.57.29%
    CBACBAPK PERLS 1415/06/20292.75%3.03%0.01%101.776.50%
    IAGIAGPECapital Notes 215/06/20293.50%3.91%0.01%1037.28%
    Macquarie GroupMQGPFCapital Notes 612/09/20293.70%2.93%0.01%105.37.21%
    Nat Aust BankNABPICapital Notes 617/09/20293.15%2.86%0.01%103.776.78%
    WestpacWBCPKCapital Notes 821/09/20292.90%3.38%0.01%103.046.70%
    ANZ BankAN3PKCapital Notes 820/03/20302.75%2.82%0.00%101.866.46%
    CBACBAPM PERLS 1617/06/20303.00%2.63%0.00%104.196.60%
    SuncorpSUNPJCapital Notes 517/06/20302.80%3.06%0.00%101.766.55%
    Nat Aust BankNABPJCapital Notes 717/09/20302.80%2.79%0.00%102.8016.49%
    Bendigo BankBENPiCapital Notes 213/12/20303.20%3.24%0.00%102.856.90%
    Insurance AustraliaIAGPFCapital Notes 315/12/20303.20%3.54%0.00%102.76.98%
    ANZ BankAN3PLCapital Notes 920/03/20312.90%2.79%0.00%102.696.56%
    WestpacWBCPMCapital Notes 1022/09/20313.10%3.24%0.00%104.216.82%
    Macquarie GroupMQGPGCapital Notes 715/12/20312.65%2.86%0.00%101.56.40%
    Nat Aust BankNABPKCapital Notes 817/03/20322.60%2.48%0.00%103.266.25%

  • ASX-Listed Hybrids (Non-standard)

    COMPANYCODEBOND TYPECALL DATEISSUE MARGIN (inc frank)TRADING MARGINDAYCLOSING PRICE RUNNING YIELD
    NufarmNFNGStep UpPerpetual3.90%5.32%-0.01%87.29.04%
    Ramsay Health CareRHCPAPreference SharePerpetual4.85%4.64%0.00%105.68.35%
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