Summary: Trading margins up on average; rises outweigh falls by nearly 2:1; sector trading margin still below lower bound of “normal” trading range; margins of CBAPG, IAGPD, ANZPG largest movers over week; ANZPE, CBAPF cease trading shortly.
Click here for the latest daily trading margins, running yields and charts.
The median trading margin of ASX-listed hybrids again finished the week higher this week as the number of securities with higher spreads to BBSW outnumbering securities with lower spreads by a ratio of nearly 2:1. At the end of the week, the median trading margin had increased from to 2.38% to 2.47%, a reading which is still below the lower bound of its “normal” ten-year trading range.
Trading margins of the majority of hybrids varied within a range of -10bps to +23bps. Ignoring short-dated securities, the margins of Commonwealth Bank PERLS 10 (CBAPG, +50bps), Insurance Australia Capital Notes (IAGPD, -32bps) and ANZ Capital Notes 4 (ANZPG, -32bps) had the largest (absolute) changes over the week.
A couple of hybrids will cease trading on the ASX shortly. ANZ Capital Notes 2 (ANZPE) cease trading on 14 March and Commonwealth Bank PERLS 9 (CBAPF) cease trading on 21 March.
The current 3-month BBSW is 0.15%. 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** |
|---|---|---|---|---|---|---|---|---|
| CBA | CBAPF | PERLS 9 | 31-Mar-22 | 3.90% | 4.06% | -1.80% | 99.95 | 4.05% |
| ANZ Banking Group | ANZPE | Capital Notes 2 | 24-Mar-22 | 3.25% | 11.90% | -5.23% | 101.23 | 3.76% |
| Suncorp | SUNPF | Capital Notes | 17-Jun-22 | 4.10% | 1.30% | 1.40% | 100.70 | 4.21% |
| Nat. Aust. Bank | NABPD | Capital Notes 2 | 7-Jul-22 | 4.95% | 0.93% | -0.37% | 102.20 | 5.03% |
| Westpac | WBCPE | Capital Notes 2 | 23-Sep-22 | 3.05% | 0.19% | -0.84% | 102.22 | 3.15% |
| CBA | CBAPD | PERLS 7 | 15-Dec-22 | 2.80% | 1.79% | -0.21% | 100.75 | 2.92% |
| ANZ | ANZPF | Capital Notes 3 | 24-Mar-23 | 3.60% | 1.94% | 0.08% | 103.71 | 4.02% |
| Challenger | CGFPB | Capital Notes 2 | 22-May-23 | 4.40% | 2.19% | -0.06% | 102.83 | 4.43% |
| Insurance Australia | IAGPD | Capital Notes | 15-Jun-23 | 4.70% | 2.19% | -0.32% | 103.09 | 4.70% |
| ANZ | ANZPG | Capital Notes 4 | 20-Mar-24 | 4.70% | 1.54% | -0.32% | 106.09 | 4.56% |
| CBA | CBAPH | PERLS 11 | 26-Apr-24 | 3.70% | 2.22% | 0.30% | 103.00 | 3.73% |
| Bendigo Bank | BENPG | CPS 4 | 13-Jun-24 | 3.75% | 2.49% | 0.22% | 102.71 | 3.79% |
| Suncorp | SUNPG | Capital Notes 2 | 17-Jun-24 | 3.65% | 2.02% | 0.12% | 103.50 | 3.66% |
| Westpac | WBCPI | Capital Notes 6 | 30-Jul-24 | 3.70% | 2.01% | 0.00% | 103.81 | 3.70% |
| Bank of Qld | BOQPE | Capital Notes | 15-Aug-24 | 3.75% | 2.36% | -0.04% | 103.50 | 3.77% |
| Macquarie Group | MQGPC | Capital Notes 3 | 16-Dec-24 | 4.00% | 2.22% | -0.10% | 104.62 | 3.96% |
| ANZ | ANZPH | Capital Notes 5 | 20-Mar-25 | 3.80% | 2.01% | 0.16% | 105.00 | 3.75% |
| CBA | CBAPG | PERLS 10 | 15-Apr-25 | 3.40% | 2.27% | 0.50% | 103.26 | 3.43% |
| Westpac | WBCPH | Capital Notes 5 | 22-Sep-25 | 3.20% | 2.27% | 0.08% | 102.99 | 3.24% |
| AMP Group | AMPPB | Capital Notes 2 | 16-Dec-25 | 4.50% | 3.75% | -0.01% | 102.55 | 4.53% |
| Macquarie Bank | MBLPC | Capital Notes 2 | 22-Dec-25 | 4.70% | 2.51% | 0.13% | 107.42 | 4.51% |
| Challenger | CGFPC | Capital Notes 3 | 25-May-26 | 4.60% | 3.11% | 0.06% | 105.80 | 4.49% |
| Nat. Aust. Bank | NABPF | Capital Notes 3 | 17-Jun-26 | 4.00% | 2.44% | 0.19% | 105.98 | 3.91% |
| Suncorp | SUNPH | Capital Notes 3 | 17-Jun-26 | 3.00% | 2.53% | 0.02% | 101.85 | 3.09% |
| Macquarie Group | MQGPD | Capital Notes 4 | 10-Sep-26 | 4.15% | 2.52% | 0.03% | 106.60 | 4.03% |
| CBA | CBAPJ | PERLS 13 | 20-Oct-26 | 2.75% | 2.52% | 0.11% | 101.00 | 2.87% |
| Latitude | LFSPA | Capital Notes | 27-Oct-26 | 4.75% | 4.83% | 0.08% | 100.50 | 4.90% |
| Westpac | WBCPJ | Capital Notes 7 | 22-Mar-27 | 3.40% | 2.47% | 0.11% | 104.10 | 3.40% |
| CBA | CBAPI | PERLS 12 | 20-Apr-27 | 3.00% | 2.60% | 0.24% | 101.86 | 3.09% |
| Bank of Qld | BOQPF | Capital Notes 2 | 14-May-27 | 3.80% | 2.77% | -0.07% | 104.96 | 3.77% |
| Bendigo Bank | BENPH | Capital Notes | 15-Jun-27 | 3.80% | 2.97% | 0.10% | 103.81 | 3.80% |
| Macquarie Group | MQGPE | Capital Notes 5 | 20-Sep-27 | 2.90% | 2.88% | 0.13% | 100.16 | 3.04% |
| Nat. Aust. Bank | NABPH | Capital Notes 5 | 17-Dec-27 | 3.50% | 2.52% | 0.11% | 104.92 | 3.47% |
| ANZ | ANZPI | Capital Notes 6 | 20-Mar-28 | 3.00% | 2.46% | -0.04% | 102.85 | 3.06% |
| Suncorp | SUNPI | Capital Notes 4 | 17-Jun-28 | 2.90% | 2.89% | -0.01% | 100.15 | 3.04% |
| Macquarie Bank | MBLPD | Capital Notes 3 | 7-Dec-28 | 2.90% | 2.87% | 0.19% | 100.30 | 3.04% |
| Westpac | WBCPK | Capital Notes 8 | 21-Sep-29 | 2.90% | 2.62% | 0.05% | 101.78 | 2.99% |
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% | 3.43% | 0.03% | 100.05 | 3.55% |
| Crown | CWNHB | Sub Notes 2 | 23-Apr-75 | 4.00% | 4.23% | -0.11% | 97.00 | 4.27% |
| Nufarm | NFNG | Step Up | Perpetual | 3.90% | 4.86% | 0.18% | 89.50 | 5.01% |
| Omni Bridgeway | OBLHA | Bond | 31/01/2022 | 5.20% | 5.12% | 0.97% | 101.00 | 5.34% |
| Ramsay Health Care | RHCPA | Perpetual PS | Perpetual | 4.85% | 4.99% | 0.15% | 106.15 | 5.13% |
** “Clean” running yield. Includes franking credits if present.