Summary: Trading margins again higher on average; rises outnumber falls by 11:1; margin of LFSPA largest mover over week again.
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The median trading margin of ASX-listed hybrids finished the week higher again as the number of securities with higher spreads to BBSW outnumbered securities with lower spreads by a ratio of 11:1. By the end of the week, the median trading margin had increased from 2.82% (adjusted for SUNPF removal) to 2.94%.
Trading margins of the majority of hybrids varied within a range of -5bps to +40bps. Ignoring short-dated securities, the margin of Latitude Capital Notes (LFSPA, +91bps) had the largest (absolute) change over the week for a third consecutive week. Bendigo CPS4 (BENPG, +57bps) also moved noticeably.
Suncorp will redeem its Capital Notes (code: SUNPF) on the Optional Exchange Date of 17 June 2022. Holders will receive the face value of $100.00 plus the final distribution of $0.7516 per note.
3-month BBSW finished the week 9bps higher at 1.24%. 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% | 4.59% | 3.78% | 100.86 | 6.16% |
| Westpac | WBCPE | Capital Notes 2 | 23-Sep-22 | 3.05% | 1.92% | 0.06% | 101.00 | 4.25% |
| CBA | CBAPD | PERLS 7 | 15-Dec-22 | 2.80% | 2.36% | 0.40% | 100.90 | 4.01% |
| ANZ | ANZPF | Capital Notes 3 | 24-Mar-23 | 3.60% | 2.46% | 0.56% | 102.20 | 5.52% |
| Challenger | CGFPB | Capital Notes 2 | 22-May-23 | 4.40% | 3.32% | 0.34% | 101.20 | 5.56% |
| Insurance Australia | IAGPD | Capital Notes | 15-Jun-23 | 4.70% | 2.98% | 0.71% | 102.85 | 5.81% |
| ANZ | ANZPG | Capital Notes 4 | 20-Mar-24 | 4.70% | 2.66% | 0.17% | 104.54 | 5.71% |
| CBA | CBAPH | PERLS 11 | 26-Apr-24 | 3.70% | 2.18% | 0.16% | 103.65 | 4.78% |
| Bendigo Bank | BENPG | CPS 4 | 13-Jun-24 | 3.75% | 3.32% | 0.57% | 100.80 | 4.92% |
| Suncorp | SUNPG | Capital Notes 2 | 17-Jun-24 | 3.65% | 3.10% | 0.32% | 101.00 | 4.81% |
| Westpac | WBCPI | Capital Notes 6 | 30-Jul-24 | 3.70% | 2.13% | -0.18% | 104.06 | 4.76% |
| Bank of Qld | BOQPE | Capital Notes | 15-Aug-24 | 3.75% | 3.03% | 0.21% | 101.75 | 4.89% |
| Macquarie Group | MQGPC | Capital Notes 3 | 16-Dec-24 | 4.00% | 2.81% | 0.06% | 103.64 | 5.07% |
| ANZ | ANZPH | Capital Notes 5 | 20-Mar-25 | 3.80% | 2.41% | 0.03% | 104.45 | 4.84% |
| CBA | CBAPG | PERLS 10 | 15-Apr-25 | 3.40% | 2.75% | 0.32% | 102.57 | 4.53% |
| Westpac | WBCPH | Capital Notes 5 | 22-Sep-25 | 3.20% | 2.62% | 0.21% | 102.50 | 4.34% |
| AMP Group | AMPPB | Capital Notes 2 | 16-Dec-25 | 4.50% | 4.69% | 0.20% | 100.70 | 5.73% |
| Macquarie Bank | MBLPC | Capital Notes 2 | 22-Dec-25 | 4.70% | 3.12% | 0.29% | 104.85 | 5.63% |
| Challenger | CGFPC | Capital Notes 3 | 25-May-26 | 4.60% | 4.03% | 0.24% | 102.25 | 5.69% |
| Nat. Aust. Bank | NABPF | Capital Notes 3 | 17-Jun-26 | 4.00% | 2.58% | 0.01% | 106.00 | 4.96% |
| Suncorp | SUNPH | Capital Notes 3 | 17-Jun-26 | 3.00% | 2.86% | -0.14% | 100.50 | 4.19% |
| Macquarie Group | MQGPD | Capital Notes 4 | 10-Sep-26 | 4.15% | 3.19% | 0.27% | 103.58 | 5.18% |
| CBA | CBAPJ | PERLS 13 | 20-Oct-26 | 2.75% | 2.93% | 0.15% | 100.10 | 3.99% |
| Latitude | LFSPA | Capital Notes | 27-Oct-26 | 4.75% | 5.66% | 0.91% | 97.70 | 6.14% |
| Westpac | WBCPJ | Capital Notes 7 | 22-Mar-27 | 3.40% | 2.94% | 0.09% | 102.75 | 4.52% |
| CBA | CBAPI | PERLS 12 | 20-Apr-27 | 3.00% | 2.86% | 0.13% | 101.44 | 4.18% |
| Bank of Qld | BOQPF | Capital Notes 2 | 14-May-27 | 3.80% | 3.33% | 0.01% | 102.34 | 4.91% |
| Bendigo Bank | BENPH | Capital Notes | 15-Jun-27 | 3.80% | 3.52% | 0.00% | 102.25 | 4.95% |
| Macquarie Group | MQGPE | Capital Notes 5 | 20-Sep-27 | 2.90% | 2.91% | 0.02% | 100.00 | 4.11% |
| Nat. Aust. Bank | NABPH | Capital Notes 5 | 17-Dec-27 | 3.50% | 2.98% | 0.00% | 103.35 | 4.60% |
| ANZ | ANZPI | Capital Notes 6 | 20-Mar-28 | 3.00% | 2.99% | 0.11% | 100.90 | 4.21% |
| Suncorp | SUNPI | Capital Notes 4 | 17-Jun-28 | 2.90% | 2.94% | 0.04% | 99.90 | 4.12% |
| Macquarie Bank | MBLPD | Capital Notes 3 | 7-Dec-28 | 2.90% | 2.92% | 0.05% | 100.11 | 4.11% |
| ANZ | ANZPJ | Capital Notes 7 | 20-Mar-29 | 2.70% | 2.98% | 0.11% | 99.27 | 3.97% |
| CBA | CBAPK | PERLS 14 | 15-Jun-29 | 2.75% | 2.91% | 0.04% | 99.87 | 3.99% |
| Westpac | WBCPK | Capital Notes 8 | 21-Sep-29 | 2.90% | 3.01% | 0.08% | 100.25 | 4.13% |
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% | 3.53% | 0.01% | 98.50 | 4.69% |
| Crown | CWNHB | Sub Notes 2 | 23-Apr-75 | 4.00% | 4.35% | 0.08% | 97.11 | 5.42% |
| Nufarm | NFNG | Step Up | Perpetual | 3.90% | 5.76% | 0.16% | 85.00 | 6.98% |
| Omni Bridgeway | OBLHA | Bond | 31/01/2022 | 5.20% | 5.46% | 0.11% | 100.75 | 6.42% |
| Ramsay Health Care | RHCPA | Perpetual PS | Perpetual | 4.85% | 5.66% | 0.03% | 100.17 | 6.88% |
** “Clean” running yield. Includes franking credits if present.