Summary: Trading margins unchanged on average; falls outweigh rises by 2:1; sector trading margin below lower bound of “normal” trading range; margins of ANZPF, BOQPE largest movers over week; CBAPF ceases trading, ANZPJ begins trading.
Click here for the latest daily trading margins, running yields and charts.
The median trading margin of ASX-listed hybrids again finished the week unchanged this week even as the number of securities with lower spreads to BBSW outnumbered securities with higher spreads by a ratio of 2:1. At the end of the week, the median trading margin had returned to its starting point at 2.52%, a reading which is below the lower bound of its “normal” ten-year trading range.
Trading margins of the majority of hybrids varied within a range of -25bps to +17bps. Ignoring short-dated securities, the margins of ANZ Capital Notes 3 (ANZPF, +76bps) and Bank of Queensland Capital Notes (BOQPE, -36bps) had the largest (absolute) changes over the week.
Commonwealth Bank PERLS 9 (CBAPF) ceased trading on Monday while ANZ Capital Notes 7 (ANZPJ) began trading on Friday.
The current 3-month BBSW is around 0.20%. 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** |
|---|---|---|---|---|---|---|---|---|
| Suncorp | SUNPF | Capital Notes | 17-Jun-22 | 4.10% | 1.34% | -1.92% | 100.74 | 4.27% |
| Nat. Aust. Bank | NABPD | Capital Notes 2 | 7-Jul-22 | 4.95% | -0.95% | -2.26% | 102.80 | 5.06% |
| Westpac | WBCPE | Capital Notes 2 | 23-Sep-22 | 3.05% | 1.74% | -0.40% | 100.68 | 3.22% |
| CBA | CBAPD | PERLS 7 | 15-Dec-22 | 2.80% | 1.81% | -0.22% | 100.80 | 2.97% |
| ANZ | ANZPF | Capital Notes 3 | 24-Mar-23 | 3.60% | 2.21% | 0.76% | 101.80 | 4.17% |
| Challenger | CGFPB | Capital Notes 2 | 22-May-23 | 4.40% | 2.60% | 0.09% | 102.45 | 4.50% |
| Insurance Australia | IAGPD | Capital Notes | 15-Jun-23 | 4.70% | 1.52% | -0.62% | 104.00 | 4.71% |
| ANZ | ANZPG | Capital Notes 4 | 20-Mar-24 | 4.70% | 1.65% | -0.03% | 105.94 | 4.62% |
| CBA | CBAPH | PERLS 11 | 26-Apr-24 | 3.70% | 1.74% | -0.25% | 104.08 | 3.75% |
| Bendigo Bank | BENPG | CPS 4 | 13-Jun-24 | 3.75% | 2.68% | -0.09% | 102.40 | 3.86% |
| Suncorp | SUNPG | Capital Notes 2 | 17-Jun-24 | 3.65% | 2.29% | -0.07% | 103.00 | 3.74% |
| Westpac | WBCPI | Capital Notes 6 | 30-Jul-24 | 3.70% | 1.85% | 0.01% | 104.25 | 3.74% |
| Bank of Qld | BOQPE | Capital Notes | 15-Aug-24 | 3.75% | 2.44% | -0.36% | 103.40 | 3.83% |
| Macquarie Group | MQGPC | Capital Notes 3 | 16-Dec-24 | 4.00% | 2.52% | 0.07% | 103.91 | 4.04% |
| ANZ | ANZPH | Capital Notes 5 | 20-Mar-25 | 3.80% | 2.08% | -0.12% | 104.89 | 3.81% |
| CBA | CBAPG | PERLS 10 | 15-Apr-25 | 3.40% | 2.14% | 0.06% | 103.75 | 3.47% |
| Westpac | WBCPH | Capital Notes 5 | 22-Sep-25 | 3.20% | 2.30% | -0.09% | 103.00 | 3.30% |
| AMP Group | AMPPB | Capital Notes 2 | 16-Dec-25 | 4.50% | 3.66% | -0.05% | 103.00 | 4.56% |
| Macquarie Bank | MBLPC | Capital Notes 2 | 22-Dec-25 | 4.70% | 2.41% | -0.13% | 107.85 | 4.54% |
| Challenger | CGFPC | Capital Notes 3 | 25-May-26 | 4.60% | 3.27% | -0.18% | 105.34 | 4.57% |
| Nat. Aust. Bank | NABPF | Capital Notes 3 | 17-Jun-26 | 4.00% | 2.22% | -0.16% | 106.92 | 3.93% |
| Suncorp | SUNPH | Capital Notes 3 | 17-Jun-26 | 3.00% | 2.53% | -0.02% | 101.92 | 3.14% |
| Macquarie Group | MQGPD | Capital Notes 4 | 10-Sep-26 | 4.15% | 2.57% | -0.17% | 106.45 | 4.09% |
| CBA | CBAPJ | PERLS 13 | 20-Oct-26 | 2.75% | 2.60% | 0.12% | 100.78 | 2.92% |
| Latitude | LFSPA | Capital Notes | 27-Oct-26 | 4.75% | 4.96% | 0.21% | 100.20 | 4.97% |
| Westpac | WBCPJ | Capital Notes 7 | 22-Mar-27 | 3.40% | 2.34% | -0.17% | 104.79 | 3.43% |
| CBA | CBAPI | PERLS 12 | 20-Apr-27 | 3.00% | 2.56% | 0.03% | 102.15 | 3.13% |
| Bank of Qld | BOQPF | Capital Notes 2 | 14-May-27 | 3.80% | 2.93% | 0.03% | 104.38 | 3.84% |
| Bendigo Bank | BENPH | Capital Notes | 15-Jun-27 | 3.80% | 3.11% | 0.04% | 103.31 | 3.87% |
| Macquarie Group | MQGPE | Capital Notes 5 | 20-Sep-27 | 2.90% | 2.72% | -0.17% | 100.99 | 3.07% |
| Nat. Aust. Bank | NABPH | Capital Notes 5 | 17-Dec-27 | 3.50% | 2.52% | -0.08% | 105.00 | 3.52% |
| ANZ | ANZPI | Capital Notes 6 | 20-Mar-28 | 3.00% | 2.57% | 0.05% | 102.35 | 3.12% |
| Suncorp | SUNPI | Capital Notes 4 | 17-Jun-28 | 2.90% | 2.90% | 0.00% | 100.20 | 3.09% |
| Macquarie Bank | MBLPD | Capital Notes 3 | 7-Dec-28 | 2.90% | 2.89% | 0.07% | 100.33 | 3.09% |
| ANZ | ANZPJ | Capital Notes 7 | 20-Mar-29 | 2.70% | 2.56% | -0.14% | 100.95 | 2.87% |
| Westpac | WBCPK | Capital Notes 8 | 21-Sep-29 | 2.90% | 2.60% | 0.04% | 102.05 | 3.03% |
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% | 3.44% | 0.02% | 100.05 | 3.60% |
| Crown | CWNHB | Sub Notes 2 | 23-Apr-75 | 4.00% | 4.31% | 0.01% | 96.00 | 4.37% |
| Nufarm | NFNG | Step Up | Perpetual | 3.90% | 4.96% | 0.13% | 89.92 | 5.16% |
| Omni Bridgeway | OBLHA | Bond | 31/01/2022 | 5.20% | 4.93% | 0.35% | 101.34 | 5.38% |
| Ramsay Health Care | RHCPA | Perpetual PS | Perpetual | 4.85% | 5.11% | 0.08% | 105.78 | 5.30% |
** “Clean” running yield. Includes franking credits if present.