Daily

Summary:

Australian bank hybrid securities remained a reliable source of income for yield-focused investors in July, with both standard and non-standard hybrids offering competitive returns.

Standard Bank Hybrids

The average trading margin across standard hybrids stood at 5.04%, while the average running yield was 7.12%. These figures reflect a stable environment for income investors, with a broad range of securities offering yields above 7%.

• Highest Yielding Security:
  Judo Capital (JDOPA) delivered the strongest running yield at 9.52%, highlighting investor interest in newer, higher-risk issuers.
• Highest Trading Margin:
  Westpac Capital Notes 5 (WBCPH) recorded a trading margin of 37.51%, likely influenced by its proximity to the call date and market pricing adjustments.

Non-Standard Hybrids

Though fewer in number, non-standard hybrids continued to outperform on yield, with an average running yield of 8.68% and an average trading margin of 4.99%.

• Top Performer:
  Nufarm (NFNG) led the non-standard segment with a 9.01% running yield and a 5.32% trading margin, making it the standout across both metrics.

These results underscore the continued appeal of hybrid securities for investors seeking income in a low-growth environment. While standard hybrids offer consistency and liquidity, non-standard issues provide enhanced returns for those comfortable with structural differences and perpetual terms.

• 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%	37.51%	0.83%	99.97	7.22%
  AMP Group	AMPPB	Capital Notes 2	16/12/2025	4.50%	9.84%	0.10%	101	8.35%
  Macquarie Bank	MBLPC	Capital Notes 2	22/12/2025	4.70%	8.96%	0.08%	101.049	8.52%
  Challenger	CGFPC	Capital Notes 3	25/05/2026	4.60%	6.43%	0.04%	102.47	8.40%
  Nat Aust Bank	NABPF	Capital Notes 3	17/06/2026	4.00%	5.17%	0.03%	102.099	7.76%
  Suncorp	SUNPH	Capital Notes 3	17/06/2026	3.00%	5.19%	0.03%	100.88	6.81%
  Macquarie Group	MQGPD	Capital Notes 4	10/09/2026	4.15%	4.51%	0.02%	102.5	7.86%
  CBA	CBAPJ	PERLS 13	20/10/2026	2.75%	4.15%	0.02%	101.05	6.54%
  Latitude	LFSPA	Capital Notes	27/10/2026	4.75%	12.56%	0.04%	96.5	9.17%
  Westpac	WBCPJ	Capital Notes 7	22/03/2027	3.40%	5.25%	0.02%	102.197	7.27%
  CBA	CBAPI	PERLS 12	20/04/2027	3.00%	3.56%	0.01%	101.91	6.74%
  Bank of Queensland	BOQPF	Capital Notes 2	14/05/2027	3.80%	4.75%	0.02%	102.58	7.59%
  Bendigo Bank	BENPH	Capital Notes	15/06/2027	3.80%	4.19%	0.01%	102.5	7.52%
  Macquarie Group	MQGPE	Capital Notes 5	20/09/2027	2.90%	3.45%	0.01%	101.39	6.64%
  Nat Aust Bank	NABPH	Capital Notes 5	17/12/2027	3.50%	3.52%	0.01%	103	7.17%
  ANZ Bank	AN3PI	Capital Notes 6	20/03/2028	3.00%	3.02%	0.01%	102.16	6.68%
  CBA	CBAPL	PERLS 15	15/06/2028	2.85%	3.28%	0.01%	101.76	6.59%
  Suncorp	SUNPI	Capital Notes 4	17/06/2028	2.90%	3.64%	0.01%	101.05	6.69%
  Westpac	WBCPL	Capital Notes 9	22/09/2028	3.40%	3.92%	0.01%	103.68	7.16%
  Macquarie Bank	MBLPD	Capital Notes 3	7/12/2028	2.90%	3.06%	0.01%	102.2	6.60%
  Bank of Queensland	BOQPG	Capital Notes 3	15/12/2028	3.40%	3.59%	0.01%	102.601	7.10%
  Judo Capital	JDOPA	Capital Notes	16/02/2029	6.50%	4.16%	0.01%	112	9.52%
  ANZ Bank	AN3PJ	Capital Notes 7	20/03/2029	2.70%	2.97%	0.01%	101.39	6.42%
  Challenger	CGFPD	Capital Notes 4	25/05/2029	3.60%	3.67%	0.01%	103.5	7.28%
  CBA	CBAPK	PERLS 14	15/06/2029	2.75%	3.09%	0.01%	101.77	6.49%
  IAG	IAGPE	Capital Notes 2	15/06/2029	3.50%	3.98%	0.01%	103	7.27%
  Macquarie Group	MQGPF	Capital Notes 6	12/09/2029	3.70%	2.98%	0.01%	105.3	7.19%
  Nat Aust Bank	NABPI	Capital Notes 6	17/09/2029	3.15%	2.92%	0.01%	103.77	6.76%
  Westpac	WBCPK	Capital Notes 8	21/09/2029	2.90%	3.45%	0.01%	103.04	6.68%
  ANZ Bank	AN3PK	Capital Notes 8	20/03/2030	2.75%	2.86%	0.00%	101.86	6.44%
  CBA	CBAPM	PERLS 16	17/06/2030	3.00%	2.68%	0.01%	104.19	6.59%
  Suncorp	SUNPJ	Capital Notes 5	17/06/2030	2.80%	3.11%	0.01%	101.76	6.54%
  Nat Aust Bank	NABPJ	Capital Notes 7	17/09/2030	2.80%	2.84%	0.01%	102.801	6.47%
  Bendigo Bank	BENPi	Capital Notes 2	13/12/2030	3.20%	3.29%	0.01%	102.85	6.88%
  Insurance Australia	IAGPF	Capital Notes 3	15/12/2030	3.20%	3.58%	0.00%	102.7	6.96%
  ANZ Bank	AN3PL	Capital Notes 9	20/03/2031	2.90%	2.82%	0.00%	102.69	6.54%
  Westpac	WBCPM	Capital Notes 10	22/09/2031	3.10%	3.29%	0.00%	104.21	6.81%
  Macquarie Group	MQGPG	Capital Notes 7	15/12/2031	2.65%	2.90%	0.00%	101.5	6.38%
  Nat Aust Bank	NABPK	Capital Notes 8	17/03/2032	2.60%	2.52%	0.00%	103.26	6.24%

• 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%	5.32%	0.04%	87.2	9.01%
  Ramsay Health Care	RHCPA	Preference Share	Perpetual	4.85%	4.65%	0.03%	105.6	8.34%