Daily

Summary –

The hybrid securities market continues to reflect a nuanced balance between yield appeal and credit sentiment, with trading margins and running yields offering insight into investor positioning across the capital structure.

• Yield Compression at the Top End: Major bank-issued hybrids such as CBAPM (PERLS 16) and NABPK (Capital Notes 8) are trading with running yields around 6.4%–6.6%, despite long-dated call maturities into 2030–2032. This suggests sustained demand for high-credit-quality instruments, even at tighter margins.
• Elevated Yields in Challenger and Judo Capital Notes:
  • JDOPA (Judo Capital) stands out with a 9.55% running yield, reflecting its higher margin (6.50%) and premium pricing. This may indicate market caution around smaller issuers or a premium for duration risk.
  • CGFPD (Challenger Capital Notes 4) also offers a robust 7.15% yield, balancing issuer reputation with attractive spread.
• Trading Margin Dispersion:
  • Trading margins range widely—from 2.54% (NABPK) to 56016.81% (WBCPH), the latter likely reflecting a data anomaly or illiquidity event. Excluding outliers, most bank-issued notes hover between 2.5% and 4.5%, consistent with historical norms.
• Price Stability with Minor Day Changes:
  • Most securities show minimal day-on-day movement (±0.01%), suggesting a stable secondary market with limited volatility. Exceptions like AMPPB (AMP Capital Notes 2) show slightly higher intraday change (0.34%), possibly due to repositioning or news flow.
• Non-standard Hybrids:
  • NFNG (Nufarm Step-Up) and RHCPA (Ramsay Preference Share) continue to trade below par and offer running yields above 8%, reflecting their perpetual nature and lower liquidity. These instruments may appeal to yield-focused investors willing to accept structural complexity.

 

 

 

 

 

• 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%	56016.81%	44818.33%	100.7	7.12%
  AMP Group	AMPPB	Capital Notes 2	16-12-2025	4.50%	23.77%	0.34%	100.1	8.40%
  Macquarie Bank	MBLPC	Capital Notes 2	22-12-2025	4.70%	18.04%	0.24%	100.72	8.52%
  Challenger	CGFPC	Capital Notes 3	25-05-2026	4.60%	8.75%	0.06%	102.66	8.37%
  Nat Aust Bank	NABPF	Capital Notes 3	17-06-2026	4.00%	7.84%	0.05%	101.7	7.75%
  Suncorp	SUNPH	Capital Notes 3	17-06-2026	3.00%	7.51%	0.05%	100.72	6.76%
  Macquarie Group	MQGPD	Capital Notes 4	10-09-2026	4.15%	6.01%	0.03%	102.3	7.83%
  CBA	CBAPJ	PERLS 13	20-10-2026	2.75%	5.48%	0.03%	101	6.48%
  Latitude	LFSPA	Capital Notes	27-10-2026	4.75%	13.55%	0.05%	97.9	9.03%
  Westpac	WBCPJ	Capital Notes 7	22-03-2027	3.40%	6.12%	0.02%	102.5	7.21%
  CBA	CBAPI	PERLS 12	20-04-2027	3.00%	4.15%	0.02%	102.25	6.66%
  Bank of Queensland	BOQPF	Capital Notes 2	14-05-2027	3.80%	4.96%	0.02%	103.73	7.47%
  Bendigo Bank	BENPH	Capital Notes	15-06-2027	3.80%	4.52%	0.02%	103.27	7.43%
  Macquarie Group	MQGPE	Capital Notes 5	20-09-2027	2.90%	3.45%	0.01%	102.4	6.51%
  Nat Aust Bank	NABPH	Capital Notes 5	17-12-2027	3.50%	3.92%	0.01%	103.4	7.10%
  ANZ Bank	AN3PI	Capital Notes 6	20-03-2028	3.00%	3.12%	0.01%	102.79	6.56%
  CBA	CBAPL	PERLS 15	15-06-2028	2.85%	3.40%	0.01%	102.62	6.48%
  Suncorp	SUNPI	Capital Notes 4	17-06-2028	2.90%	3.21%	0.01%	103.19	6.49%
  Westpac	WBCPL	Capital Notes 9	22-09-2028	3.40%	4.00%	0.01%	104.75	7.04%
  Macquarie Bank	MBLPD	Capital Notes 3	07-12-2028	2.90%	3.19%	0.01%	102.8	6.49%
  Bank of Queensland	BOQPG	Capital Notes 3	15-12-2028	3.40%	3.43%	0.01%	104.2	6.94%
  Judo Capital	JDOPA	Capital Notes	16-02-2029	6.50%	4.72%	0.01%	112	9.55%
  ANZ Bank	AN3PJ	Capital Notes 7	20-03-2029	2.70%	2.59%	0.01%	103.3	6.22%
  Challenger	CGFPD	Capital Notes 4	25-05-2029	3.60%	3.70%	0.01%	104.63	7.15%
  CBA	CBAPK	PERLS 14	15-06-2029	2.75%	2.95%	0.01%	103.3	6.33%
  IAG	IAGPE	Capital Notes 2	15-06-2029	3.50%	3.71%	0.01%	104.8	7.08%
  Macquarie Group	MQGPF	Capital Notes 6	12-09-2029	3.70%	2.92%	0.01%	106.49	7.06%
  Nat Aust Bank	NABPI	Capital Notes 6	17-09-2029	3.15%	2.69%	0.01%	105.599	6.59%
  Westpac	WBCPK	Capital Notes 8	21-09-2029	2.90%	3.65%	0.01%	103.6	6.59%
  ANZ Bank	AN3PK	Capital Notes 8	20-03-2030	2.75%	2.64%	0.00%	103.453	6.26%
  CBA	CBAPM	PERLS 16	17-06-2030	3.00%	2.59%	0.01%	105.6	6.44%
  Suncorp	SUNPJ	Capital Notes 5	17-06-2030	2.80%	2.77%	0.01%	104.07	6.33%
  Nat Aust Bank	NABPJ	Capital Notes 7	17-09-2030	2.80%	2.79%	0.01%	104.05	6.33%
  Bendigo Bank	BENPi	Capital Notes 2	13-12-2030	3.20%	3.16%	0.01%	104.5	6.72%
  Insurance Australia	IAGPF	Capital Notes 3	15-12-2030	3.20%	3.31%	0.00%	104.66	6.76%
  ANZ Bank	AN3PL	Capital Notes 9	20-03-2031	2.90%	2.69%	0.00%	104.028	6.38%
  Westpac	WBCPM	Capital Notes 10	22-09-2031	3.10%	3.22%	0.01%	105.65	6.66%
  Macquarie Group	MQGPG	Capital Notes 7	15-12-2031	2.65%	2.68%	0.00%	103.4	6.19%
  Nat Aust Bank	NABPK	Capital Notes 8	17-03-2032	2.60%	2.54%	0.00%	104.2	6.12%

• COMPANY	CODE	BOND TYPE	CALL DATE	ISSUE MARGIN (inc frank)	TRADING MARGIN	DAY	CLOSING PRICE	RUNNING YIELD
  Nufarm	NFNG	Step Up	Perpetual	3.90%	5.16%	-0.01%	90.5	8.72%
  Ramsay Health Care	RHCPA	Preference Share	Perpetual	4.85%	4.58%	-0.01%	108.639	8.14%