Daily

Summary:

The Australian bank hybrid market remains a popular choice for investors seeking attractive income combined with credit stability. As of 24 July 2025, bank-issued hybrids continue to deliver robust running yields, competitive trading margins, and steady prices, reaffirming their place as a core income asset on the ASX.

Market Highlights

• Attractive Yields: Major bank hybrids are offering running yields between approximately 7.2% and 8.5%, providing a meaningful spread above cash investments and senior debt.

• Matured Issues Driving Margins: Hybrids nearing their call date—such as Westpac’s WBCPH—show significantly elevated trading margins (36.68%), presenting short-term income opportunities but higher reinvestment risk.

• Stable Pricing: Prices for most bank hybrids remain near or above par, reflecting sustained confidence in credit quality and liquidity.

• Yield Compression Among Newer Issues: Newer and longer-dated hybrids are showing some yield tightening as investor demand remains strong.

• Issuer Concentration: Macquarie Group has three of the top five highest-yielding hybrid securities, indicating a favorable pricing environment amid perceived credit strength.

What This Means for Investors

The ASX-listed Australian bank hybrids market remains a cornerstone for income-focused portfolios. Investors benefit from steady income, reasonable price stability, and clear visibility of call dates. However, the market currently balances the allure of high short-term yields from maturing hybrids with the reinvestment risk posed when those securities are called.

Monitoring margin trends, market pricing, and issuer announcements will help investors navigate upcoming maturities and adjust strategies accordingly.

 

• 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%	36.68%	0.80%	99.97	7.22%
  AMP Group	AMPPB	Capital Notes 2	16/12/2025	4.50%	9.74%	0.10%	101	8.35%
  Macquarie Bank	MBLPC	Capital Notes 2	22/12/2025	4.70%	8.88%	0.08%	101.049	8.52%
  Challenger	CGFPC	Capital Notes 3	25/05/2026	4.60%	6.40%	0.04%	102.47	8.39%
  Nat Aust Bank	NABPF	Capital Notes 3	17/06/2026	4.00%	5.14%	0.03%	102.099	7.75%
  Suncorp	SUNPH	Capital Notes 3	17/06/2026	3.00%	5.16%	0.03%	100.88	6.81%
  Macquarie Group	MQGPD	Capital Notes 4	10/09/2026	4.15%	4.49%	0.02%	102.5	7.86%
  CBA	CBAPJ	PERLS 13	20/10/2026	2.75%	4.13%	0.02%	101.05	6.53%
  Latitude	LFSPA	Capital Notes	27/10/2026	4.75%	12.52%	0.04%	96.5	9.17%
  Westpac	WBCPJ	Capital Notes 7	22/03/2027	3.40%	5.23%	0.02%	102.197	7.27%
  CBA	CBAPI	PERLS 12	20/04/2027	3.00%	3.55%	0.01%	101.91	6.74%
  Bank of Queensland	BOQPF	Capital Notes 2	14/05/2027	3.80%	4.73%	0.02%	102.58	7.58%
  Bendigo Bank	BENPH	Capital Notes	15/06/2027	3.80%	4.18%	0.01%	102.5	7.52%
  Macquarie Group	MQGPE	Capital Notes 5	20/09/2027	2.90%	3.44%	0.01%	101.39	6.64%
  Nat Aust Bank	NABPH	Capital Notes 5	17/12/2027	3.50%	3.51%	0.01%	103	7.17%
  ANZ Bank	AN3PI	Capital Notes 6	20/03/2028	3.00%	3.01%	0.01%	102.16	6.67%
  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%	3.63%	0.01%	101.05	6.69%
  Westpac	WBCPL	Capital Notes 9	22/09/2028	3.40%	3.91%	0.01%	103.68	7.16%
  Macquarie Bank	MBLPD	Capital Notes 3	7/12/2028	2.90%	3.05%	0.01%	102.2	6.60%
  Bank of Queensland	BOQPG	Capital Notes 3	15/12/2028	3.40%	3.58%	0.01%	102.601	7.10%
  Judo Capital	JDOPA	Capital Notes	16/02/2029	6.50%	4.15%	0.01%	112	9.52%
  ANZ Bank	AN3PJ	Capital Notes 7	20/03/2029	2.70%	2.96%	0.00%	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%	3.97%	0.01%	103	7.26%
  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%	3.44%	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	6.58%
  Suncorp	SUNPJ	Capital Notes 5	17/06/2030	2.80%	3.10%	0.01%	101.76	6.54%
  Nat Aust Bank	NABPJ	Capital Notes 7	17/09/2030	2.80%	2.83%	0.00%	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%	3.28%	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%	5.29%	0.01%	87.2	8.98%
  Ramsay Health Care	RHCPA	Preference Share	Perpetual	4.85%	4.62%	0.01%	105.6	8.31%