Daily

Summary –

The hybrid market continues to offer a spectrum of yield opportunities, with investor appetite shaped by credit quality, duration, and structural complexity. Here’s a breakdown of key trends across both standard and non-standard listings:

Major Bank Hybrids: Stability with Moderate Yield

Capital notes from the Big Four banks—CBA, Westpac, NAB, and ANZ—remain tightly traded, with running yields clustering around 6.3%–6.7%. CBAPM (PERLS 16) and NABPK (Capital Notes 8) show trading margins near 2.6%, reflecting strong demand for long-dated, high-credit instruments. Minimal day-on-day price movement (±0.01%–0.03%) underscores secondary market stability.

Mid-Tier Issuers: Yield Premiums with Selective Risk

Latitude’s LFSPA and Judo Capital’s JDOPA stand out with running yields of 9.03% and 9.55% respectively. These elevated returns are driven by higher issue margins (4.75% and 6.50%) and modest discounts to par, suggesting investor caution balanced by yield-seeking behavior.

Non-Standard Hybrids: Structural Complexity, High Yield

Nufarm’s NFNG and Ramsay’s RHCPA continue to offer yields above 8%, trading below and above par respectively. Their perpetual nature and step-up/preference structures contribute to pricing inefficiencies and liquidity premiums. These instruments may suit investors with tolerance for structural nuance and longer holding horizons.

Trading Margin Dispersion: From Defensive to Opportunistic

Trading margins range from sub-3% in high-grade notes (e.g., MQGPG, NABPK) to over 24% in AMPPB (AMP Capital Notes 2), which may reflect market skepticism or technical pricing anomalies. AMP’s elevated margin and 8.39% yield suggest a reassessment of credit risk or liquidity positioning.

 

• 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%			100.7	7.11%
  AMP Group	AMPPB	Capital Notes 2	16/12/2025	4.50%	24.86%	1.09%	100.1	8.39%
  Macquarie Bank	MBLPC	Capital Notes 2	22/12/2025	4.70%	18.79%	0.75%	100.72	8.52%
  Challenger	CGFPC	Capital Notes 3	25/05/2026	4.60%	8.92%	0.17%	102.66	8.36%
  Nat Aust Bank	NABPF	Capital Notes 3	17/06/2026	4.00%	7.99%	0.14%	101.7	7.75%
  Suncorp	SUNPH	Capital Notes 3	17/06/2026	3.00%	7.65%	0.14%	100.72	6.76%
  Macquarie Group	MQGPD	Capital Notes 4	10/09/2026	4.15%	6.09%	0.08%	102.3	7.82%
  CBA	CBAPJ	PERLS 13	20/10/2026	2.75%	5.55%	0.08%	101	6.47%
  Latitude	LFSPA	Capital Notes	27/10/2026	4.75%	13.70%	0.15%	97.9	9.03%
  Westpac	WBCPJ	Capital Notes 7	22/03/2027	3.40%	6.18%	0.06%	102.5	7.20%
  CBA	CBAPI	PERLS 12	20/04/2027	3.00%	4.19%	0.05%	102.25	6.65%
  Bank of Queensland	BOQPF	Capital Notes 2	14/05/2027	3.80%	5.01%	0.06%	103.73	7.46%
  Bendigo Bank	BENPH	Capital Notes	15/06/2027	3.80%	4.57%	0.05%	103.27	7.42%
  Macquarie Group	MQGPE	Capital Notes 5	20/09/2027	2.90%	3.48%	0.03%	102.4	6.50%
  Nat Aust Bank	NABPH	Capital Notes 5	17/12/2027	3.50%	3.96%	0.03%	103.4	7.09%
  ANZ Bank	AN3PI	Capital Notes 6	20/03/2028	3.00%	3.14%	0.02%	102.79	6.55%
  CBA	CBAPL	PERLS 15	15/06/2028	2.85%	3.42%	0.03%	102.62	6.47%
  Suncorp	SUNPI	Capital Notes 4	17/06/2028	2.90%	3.24%	0.03%	103.19	6.48%
  Westpac	WBCPL	Capital Notes 9	22/09/2028	3.40%	4.03%	0.03%	104.75	7.04%
  Macquarie Bank	MBLPD	Capital Notes 3	7/12/2028	2.90%	3.20%	0.02%	102.8	6.48%
  Bank of Queensland	BOQPG	Capital Notes 3	15/12/2028	3.40%	3.45%	0.02%	104.2	6.94%
  Judo Capital	JDOPA	Capital Notes	16/02/2029	6.50%	4.75%	0.03%	112	9.55%
  ANZ Bank	AN3PJ	Capital Notes 7	20/03/2029	2.70%	2.60%	0.01%	103.3	6.21%
  Challenger	CGFPD	Capital Notes 4	25/05/2029	3.60%	3.73%	0.02%	104.63	7.15%
  CBA	CBAPK	PERLS 14	15/06/2029	2.75%	2.97%	0.02%	103.3	6.32%
  IAG	IAGPE	Capital Notes 2	15/06/2029	3.50%	3.73%	0.02%	104.8	7.07%
  Macquarie Group	MQGPF	Capital Notes 6	12/09/2029	3.70%	2.93%	0.02%	106.49	7.05%
  Nat Aust Bank	NABPI	Capital Notes 6	17/09/2029	3.15%	2.71%	0.02%	105.599	6.58%
  Westpac	WBCPK	Capital Notes 8	21/09/2029	2.90%	3.67%	0.02%	103.6	6.58%
  ANZ Bank	AN3PK	Capital Notes 8	20/03/2030	2.75%	2.65%	0.01%	103.453	6.25%
  CBA	CBAPM	PERLS 16	17/06/2030	3.00%	2.61%	0.02%	105.6	6.43%
  Suncorp	SUNPJ	Capital Notes 5	17/06/2030	2.80%	2.78%	0.02%	104.07	6.32%
  Nat Aust Bank	NABPJ	Capital Notes 7	17/09/2030	2.80%	2.80%	0.02%	104.05	6.32%
  Bendigo Bank	BENPi	Capital Notes 2	13/12/2030	3.20%	3.17%	0.02%	104.5	6.71%
  Insurance Australia	IAGPF	Capital Notes 3	15/12/2030	3.20%	3.33%	0.01%	104.66	6.75%
  ANZ Bank	AN3PL	Capital Notes 9	20/03/2031	2.90%	2.71%	0.01%	104.028	6.37%
  Westpac	WBCPM	Capital Notes 10	22/09/2031	3.10%	3.24%	0.01%	105.65	6.66%
  Macquarie Group	MQGPG	Capital Notes 7	15/12/2031	2.65%	2.69%	0.01%	103.4	6.18%
  Nat Aust Bank	NABPK	Capital Notes 8	17/03/2032	2.60%	2.55%	0.01%	104.2	6.11%

• COMPANY	CODE	BOND TYPE	CALL DATE	ISSUE MARGIN (inc frank)	TRADING MARGIN	DAY	CLOSING PRICE	RUNNING YIELD
  Nufarm	NFNG	Step Up	Perpetual	3.90%	5.17%	0.01%	90.5	8.72%
  Ramsay Health Care	RHCPA	Preference Share	Perpetual	4.85%	4.59%	0.01%	108.639	8.14%