Daily

Summary:

As of 23 July 2025, Australian bank hybrid securities continue to offer attractive yields and stable market performance, maintaining their appeal for income-focused investors on the ASX.

Yields on major bank hybrids typically range between 6.4% and 8.5%, with a number of issues providing running yields above 7%. For example, Westpac’s Capital Notes 5 deliver a yield of around 7.2%, while Macquarie Bank’s Capital Notes 2 and AMP Group’s Capital Notes 2 offer yields over 8%. Newer hybrid issues from lenders like Judo Capital stand out with higher yields near 9.5%, reflecting their relative risk and investor appetite.

Most hybrids trade close to or slightly above their issue price, signaling steady investor demand and confidence. Trading margins have generally tightened, highlighting a relatively stable secondary market across various call and maturity dates extending from 2025 through to the early 2030s.

The big four banks (Westpac, CBA, NAB, and ANZ) dominate the hybrids segment, but there is increasing participation from regional banks such as Bank of Queensland and Bendigo Bank, alongside emerging names like Judo Capital. This sector diversification offers investors a broad range of opportunities to balance yield and risk.

Non-standard hybrids, such as Nufarm’s Step-Up notes and Ramsay Health Care’s preference shares, also provide compelling yields above 8%, but tend to trade at a slight discount or premium depending on issuer-specific factors.

Overall, bank hybrids remain a foundation for defensive income portfolios, supported by stable pricing and attractive margins. Investors should continue to consider call dates, margin resets, and individual hybrid terms when assessing these securities as part of their income strategies.

This snapshot signals ongoing market resilience in the Australian hybrid space as of July 2025, reinforcing its role as an important income source amid the current market environment.

• 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%	35.88%	0.77%	99.97	7.22%
  AMP Group	AMPPB	Capital Notes 2	16/12/2025	4.50%	9.64%	0.10%	101	8.35%
  Macquarie Bank	MBLPC	Capital Notes 2	22/12/2025	4.70%	8.80%	0.08%	101.049	8.52%
  Challenger	CGFPC	Capital Notes 3	25/05/2026	4.60%	6.36%	0.04%	102.47	8.40%
  Nat Aust Bank	NABPF	Capital Notes 3	17/06/2026	4.00%	5.11%	0.03%	102.099	7.76%
  Suncorp	SUNPH	Capital Notes 3	17/06/2026	3.00%	5.13%	0.03%	100.88	6.81%
  Macquarie Group	MQGPD	Capital Notes 4	10/09/2026	4.15%	4.47%	0.02%	102.5	7.86%
  CBA	CBAPJ	PERLS 13	20/10/2026	2.75%	4.11%	0.02%	101.05	6.54%
  Latitude	LFSPA	Capital Notes	27/10/2026	4.75%	12.48%	0.04%	96.5	9.17%
  Westpac	WBCPJ	Capital Notes 7	22/03/2027	3.40%	5.21%	0.02%	102.197	7.27%
  CBA	CBAPI	PERLS 12	20/04/2027	3.00%	3.53%	0.01%	101.91	6.74%
  Bank of Queensland	BOQPF	Capital Notes 2	14/05/2027	3.80%	4.71%	0.02%	102.58	7.59%
  Bendigo Bank	BENPH	Capital Notes	15/06/2027	3.80%	4.16%	0.01%	102.5	7.52%
  Macquarie Group	MQGPE	Capital Notes 5	20/09/2027	2.90%	3.43%	0.01%	101.39	6.65%
  Nat Aust Bank	NABPH	Capital Notes 5	17/12/2027	3.50%	3.50%	0.01%	103	7.17%
  ANZ Bank	AN3PI	Capital Notes 6	20/03/2028	3.00%	3.01%	0.01%	102.16	6.68%
  CBA	CBAPL	PERLS 15	15/06/2028	2.85%	3.27%	0.01%	101.76	6.59%
  Suncorp	SUNPI	Capital Notes 4	17/06/2028	2.90%	3.62%	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%	3.57%	0.01%	102.601	7.10%
  Judo Capital	JDOPA	Capital Notes	16/02/2029	6.50%	4.14%	0.01%	112	9.52%
  ANZ Bank	AN3PJ	Capital Notes 7	20/03/2029	2.70%	2.96%	0.01%	101.39	6.42%
  Challenger	CGFPD	Capital Notes 4	25/05/2029	3.60%	3.66%	0.01%	103.5	7.28%
  CBA	CBAPK	PERLS 14	15/06/2029	2.75%	3.08%	0.01%	101.77	6.49%
  IAG	IAGPE	Capital Notes 2	15/06/2029	3.50%	3.96%	0.01%	103	7.27%
  Macquarie Group	MQGPF	Capital Notes 6	12/09/2029	3.70%	2.97%	0.01%	105.3	7.19%
  Nat Aust Bank	NABPI	Capital Notes 6	17/09/2029	3.15%	2.91%	0.01%	103.77	6.77%
  Westpac	WBCPK	Capital Notes 8	21/09/2029	2.90%	3.43%	0.01%	103.04	6.68%
  ANZ Bank	AN3PK	Capital Notes 8	20/03/2030	2.75%	2.85%	0.00%	101.86	6.44%
  CBA	CBAPM	PERLS 16	17/06/2030	3.00%	2.67%	0.01%	104.19	6.59%
  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%	0.01%	102.801	6.47%
  Bendigo Bank	BENPi	Capital Notes 2	13/12/2030	3.20%	3.28%	0.01%	102.85	6.88%
  Insurance Australia	IAGPF	Capital Notes 3	15/12/2030	3.20%	3.57%	0.00%	102.7	6.96%
  ANZ Bank	AN3PL	Capital Notes 9	20/03/2031	2.90%	2.81%	0.00%	102.69	6.54%
  Westpac	WBCPM	Capital Notes 10	22/09/2031	3.10%	3.28%	0.01%	104.21	6.81%
  Macquarie Group	MQGPG	Capital Notes 7	15/12/2031	2.65%	2.89%	0.00%	101.5	6.38%
  Nat Aust Bank	NABPK	Capital Notes 8	17/03/2032	2.60%	2.51%	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%	5.28%	-0.01%	87.2	8.97%
  Ramsay Health Care	RHCPA	Preference Share	Perpetual	4.85%	4.61%	-0.01%	105.6	8.30%