Summary: Trading margins slightly lower on average; falls outnumber rises by 3:1; margins of WBCPI, MBLPC, MQGPC largest movers over week; latest Westpac hybrid announced, WBCPE to be redeemed in September.
Click here for the latest daily trading margins, running yields and charts.
The median trading margin of ASX-listed hybrids finished the week slightly lower as the number of securities with lower spreads to BBSW outnumbered securities with higher spreads by a ratio of nearly 3:1. By the end of the week, the median trading margin had declined from 3.51% to 3.47%.
Trading margins of the majority of hybrids varied within a range of -58bps to +16bps. Ignoring short-dated securities, the margins of Westpac Capital Notes 6 (WBCPI, -153bps), Macquarie Bank Capital Notes 2 (MBLPC, -95bps) and Macquarie Capital Notes 3 (MQGPC, -89bps) had the largest (absolute) changes over the week.
Westpac announced the issue margin for its latest offer of capital notes on Thursday. As expected, the issue margin was at the low end of the indicative range (3.40%). Westpac also announced it will redeem any Capital Notes 2 hybrids (code: WBCPE) remaining on issue on 23 September for $100.00.
3-month BBSW finished the week 6bps lower at 1.74%. Add the trading margin from the above chart or from the tables to this figure for an estimate of the gross return per annum in the absence of BBSW rate changes. The gross return may contain imputation credits. BBSW typically is around 15bps (average since 1990) more than the RBA rate.
ASX-LISTED HYBRIDS (STANDARD)
| COMPANY | CODE | HYBRID TYPE | MATURITY/ CALL DATE | MARGIN INCL. CREDITS | TRADING MARGIN | WEEK CHANGE | WEEK CLOSE | RUNNING YIELD** |
|---|---|---|---|---|---|---|---|---|
| Nat. Aust. Bank | NABPD | Capital Notes 2 | 7-Jul-22 | 4.95% | 18.57% | 1.47% | 100.67 | 6.72% |
| Westpac | WBCPE | Capital Notes 2 | 23-Sep-22 | 3.05% | 3.63% | 1.29% | 99.88 | 4.80% |
| CBA | CBAPD | PERLS 7 | 15-Dec-22 | 2.80% | 3.01% | 0.12% | 100.00 | 4.54% |
| ANZ | ANZPF | Capital Notes 3 | 24-Mar-23 | 3.60% | 3.29% | -0.82% | 101.75 | 6.16% |
| Challenger | CGFPB | Capital Notes 2 | 22-May-23 | 4.40% | 4.94% | 0.45% | 100.00 | 6.16% |
| Insurance Australia | IAGPD | Capital Notes | 15-Jun-23 | 4.70% | 3.53% | 0.28% | 101.30 | 6.36% |
| ANZ | ANZPG | Capital Notes 4 | 20-Mar-24 | 4.70% | 2.70% | -0.39% | 103.42 | 6.23% |
| CBA | CBAPH | PERLS 11 | 26-Apr-24 | 3.70% | 2.88% | -0.28% | 101.61 | 5.36% |
| Bendigo Bank | BENPG | CPS 4 | 13-Jun-24 | 3.75% | 3.71% | -0.42% | 100.32 | 5.48% |
| Suncorp | SUNPG | Capital Notes 2 | 17-Jun-24 | 3.65% | 2.99% | -0.40% | 101.39 | 5.32% |
| Westpac | WBCPI | Capital Notes 6 | 30-Jul-24 | 3.70% | 1.73% | -1.53% | 104.01 | 5.23% |
| Bank of Qld | BOQPE | Capital Notes | 15-Aug-24 | 3.75% | 3.79% | 0.00% | 100.57 | 5.49% |
| Macquarie Group | MQGPC | Capital Notes 3 | 16-Dec-24 | 4.00% | 2.81% | -0.89% | 102.90 | 5.58% |
| ANZ | ANZPH | Capital Notes 5 | 20-Mar-25 | 3.80% | 2.41% | -0.58% | 103.60 | 5.35% |
| CBA | CBAPG | PERLS 10 | 15-Apr-25 | 3.40% | 3.14% | -0.01% | 100.90 | 5.10% |
| Westpac | WBCPH | Capital Notes 5 | 22-Sep-25 | 3.20% | 3.22% | -0.08% | 100.12 | 4.93% |
| AMP Group | AMPPB | Capital Notes 2 | 16-Dec-25 | 4.50% | 4.82% | -0.13% | 99.47 | 6.28% |
| Macquarie Bank | MBLPC | Capital Notes 2 | 22-Dec-25 | 4.70% | 2.95% | -0.95% | 105.50 | 6.11% |
| Challenger | CGFPC | Capital Notes 3 | 25-May-26 | 4.60% | 4.03% | -0.02% | 102.50 | 6.21% |
| Nat. Aust. Bank | NABPF | Capital Notes 3 | 17-Jun-26 | 4.00% | 3.40% | -0.09% | 102.30 | 5.62% |
| Suncorp | SUNPH | Capital Notes 3 | 17-Jun-26 | 3.00% | 3.14% | -0.37% | 99.77 | 4.75% |
| Macquarie Group | MQGPD | Capital Notes 4 | 10-Sep-26 | 4.15% | 3.54% | -0.29% | 102.51 | 5.75% |
| CBA | CBAPJ | PERLS 13 | 20-Oct-26 | 2.75% | 3.10% | -0.15% | 99.00 | 4.54% |
| Latitude | LFSPA | Capital Notes | 27-Oct-26 | 4.75% | 7.29% | 0.04% | 93.10 | 7.03% |
| Westpac | WBCPJ | Capital Notes 7 | 22-Mar-27 | 3.40% | 3.47% | -0.04% | 100.02 | 5.14% |
| CBA | CBAPI | PERLS 12 | 20-Apr-27 | 3.00% | 3.09% | -0.30% | 99.94 | 4.75% |
| Bank of Qld | BOQPF | Capital Notes 2 | 14-May-27 | 3.80% | 3.85% | -0.23% | 100.60 | 5.54% |
| Bendigo Bank | BENPH | Capital Notes | 15-Jun-27 | 3.80% | 3.99% | -0.02% | 99.65 | 5.56% |
| Macquarie Group | MQGPE | Capital Notes 5 | 20-Sep-27 | 2.90% | 3.57% | 0.12% | 97.50 | 4.76% |
| Nat. Aust. Bank | NABPH | Capital Notes 5 | 17-Dec-27 | 3.50% | 3.55% | -0.02% | 100.15 | 5.24% |
| ANZ | ANZPI | Capital Notes 6 | 20-Mar-28 | 3.00% | 3.36% | 0.00% | 98.67 | 4.81% |
| Suncorp | SUNPI | Capital Notes 4 | 17-Jun-28 | 2.90% | 3.80% | -0.03% | 96.20 | 4.83% |
| Macquarie Bank | MBLPD | Capital Notes 3 | 7-Dec-28 | 2.90% | 3.29% | -0.09% | 98.50 | 4.72% |
| ANZ | ANZPJ | Capital Notes 7 | 20-Mar-29 | 2.70% | 3.67% | 0.01% | 95.45 | 4.65% |
| CBA | CBAPK | PERLS 14 | 15-Jun-29 | 2.75% | 3.48% | 0.05% | 96.55 | 4.65% |
| Westpac | WBCPK | Capital Notes 8 | 21-Sep-29 | 2.90% | 3.46% | -0.29% | 97.32 | 4.77% |
ASX-LISTED HYBRIDS (NON-STANDARD)
| COMPANY | CODE | HYBRID TYPE | MATURITY/ CALL DATE | MARGIN INCL. CREDITS | TRADING MARGIN | WEEK CHANGE | WEEK CLOSE | RUNNING YIELD** |
|---|---|---|---|---|---|---|---|---|
| Challenger | CGFPA | Capital Notes | 25-May-22 | 3.40% | 3.56% | 0.00% | 98.50 | 5.23% |
| Crown | CWNHB | Sub Notes 2 | 23-Apr-75 | 4.00% | 4.03% | -0.15% | 101.85 | 5.70% |
| Nufarm | NFNG | Step Up | Perpetual | 3.90% | 6.12% | -0.03% | 83.60 | 7.86% |
| Omni Bridgeway | OBLHA | Bond | 31/01/2022 | 5.20% | 6.24% | 0.83% | 100.71 | 6.97% |
| Ramsay Health Care | RHCPA | Perpetual PS | Perpetual | 4.85% | 5.86% | -0.16% | 99.00 | 7.60% |
** “Clean” running yield. Includes franking credits if present.