Summary: Trading margins up on average; rises outweigh falls by 2:1; sector trading margin still well below lower bound of “normal” trading range; margins of IAGPD, SUNPG largest movers over week; CBA announces new listed capital note, redemption of CBAPFs.
Click here for the latest daily trading margins, running yields and charts.
The median trading margin of ASX-listed hybrids 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 2:1. At the end of the week, the median trading margin had increased from to 2.31% to 2.38%, a reading which is still well below the lower bound of its “normal” ten-year trading range and not all that far above the record low reached in early January.
Trading margins of the majority of hybrids varied within a range of -13bps to +20bps. Ignoring short-dated securities, the margins of Insurance Australia Capital Notes (IAGPD, +68bps) and Suncorp Capital Notes 2 (SUNPG, -32bps) had the largest (absolute) changes over the week.
Commonwealth Bank announced it will issue a new listed capital note on Tuesday. The new hybrids will fund the redemption of PERLS 9 Capital Notes (CBAPF) which will cease trading on 21 March. The new hybrid’s margin to BBSW was set at 2.75% on Friday.
The current 3-month BBSW rate is 12bps above zero. 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% | 5.87% | 1.04% | 99.74 | 3.99% |
| ANZ Banking Group | ANZPE | Capital Notes 2 | 24-Mar-22 | 3.25% | 17.13% | 3.91% | 100.75 | 3.56% |
| Suncorp | SUNPF | Capital Notes | 17-Jun-22 | 4.10% | -0.10% | -1.17% | 101.09 | 4.13% |
| Nat. Aust. Bank | NABPD | Capital Notes 2 | 7-Jul-22 | 4.95% | 1.30% | 0.95% | 102.05 | 4.97% |
| Westpac | WBCPE | Capital Notes 2 | 23-Sep-22 | 3.05% | 1.03% | -0.10% | 101.74 | 3.10% |
| CBA | CBAPD | PERLS 7 | 15-Dec-22 | 2.80% | 2.00% | 0.04% | 100.55 | 2.87% |
| ANZ | ANZPF | Capital Notes 3 | 24-Mar-23 | 3.60% | 1.86% | 0.14% | 103.60 | 3.81% |
| Challenger | CGFPB | Capital Notes 2 | 22-May-23 | 4.40% | 2.26% | -0.05% | 102.71 | 4.37% |
| Insurance Australia | IAGPD | Capital Notes | 15-Jun-23 | 4.70% | 2.51% | 0.68% | 102.64 | 4.66% |
| ANZ | ANZPG | Capital Notes 4 | 20-Mar-24 | 4.70% | 1.85% | 0.02% | 106.60 | 4.53% |
| CBA | CBAPH | PERLS 11 | 26-Apr-24 | 3.70% | 1.92% | 0.06% | 103.58 | 3.65% |
| Bendigo Bank | BENPG | CPS 4 | 13-Jun-24 | 3.75% | 2.26% | 0.10% | 103.15 | 3.71% |
| Suncorp | SUNPG | Capital Notes 2 | 17-Jun-24 | 3.65% | 1.90% | -0.32% | 103.73 | 3.60% |
| Westpac | WBCPI | Capital Notes 6 | 30-Jul-24 | 3.70% | 2.01% | 0.10% | 104.70 | 3.64% |
| Bank of Qld | BOQPE | Capital Notes | 15-Aug-24 | 3.75% | 2.40% | 0.22% | 103.36 | 3.72% |
| Macquarie Group | MQGPC | Capital Notes 3 | 16-Dec-24 | 4.00% | 2.33% | -0.01% | 104.31 | 3.91% |
| ANZ | ANZPH | Capital Notes 5 | 20-Mar-25 | 3.80% | 1.85% | 0.05% | 106.40 | 3.68% |
| CBA | CBAPG | PERLS 10 | 15-Apr-25 | 3.40% | 1.78% | -0.17% | 104.69 | 3.33% |
| Westpac | WBCPH | Capital Notes 5 | 22-Sep-25 | 3.20% | 2.19% | 0.10% | 104.01 | 3.18% |
| AMP Group | AMPPB | Capital Notes 2 | 16-Dec-25 | 4.50% | 3.76% | 0.17% | 103.58 | 4.47% |
| Macquarie Bank | MBLPC | Capital Notes 2 | 22-Dec-25 | 4.70% | 2.38% | 0.01% | 107.85 | 4.43% |
| Challenger | CGFPC | Capital Notes 3 | 25-May-26 | 4.60% | 3.05% | 0.03% | 105.95 | 4.43% |
| Nat. Aust. Bank | NABPF | Capital Notes 3 | 17-Jun-26 | 4.00% | 2.25% | 0.01% | 107.69 | 3.82% |
| Suncorp | SUNPH | Capital Notes 3 | 17-Jun-26 | 3.00% | 2.50% | -0.12% | 101.89 | 3.02% |
| Macquarie Group | MQGPD | Capital Notes 4 | 10-Sep-26 | 4.15% | 2.48% | 0.02% | 106.71 | 3.97% |
| CBA | CBAPJ | PERLS 13 | 20-Oct-26 | 2.75% | 2.41% | 0.11% | 101.41 | 2.79% |
| Latitude | LFSPA | Capital Notes | 27-Oct-26 | 4.75% | 4.77% | 0.02% | 100.62 | 4.83% |
| Westpac | WBCPJ | Capital Notes 7 | 22-Mar-27 | 3.40% | 2.36% | -0.01% | 105.41 | 3.33% |
| CBA | CBAPI | PERLS 12 | 20-Apr-27 | 3.00% | 2.36% | 0.13% | 102.90 | 3.00% |
| Bank of Qld | BOQPF | Capital Notes 2 | 14-May-27 | 3.80% | 2.84% | -0.01% | 104.59 | 3.72% |
| Bendigo Bank | BENPH | Capital Notes | 15-Jun-27 | 3.80% | 2.88% | -0.02% | 104.20 | 3.72% |
| Macquarie Group | MQGPE | Capital Notes 5 | 20-Sep-27 | 2.90% | 2.75% | 0.01% | 100.71 | 2.96% |
| Nat. Aust. Bank | NABPH | Capital Notes 5 | 17-Dec-27 | 3.50% | 2.41% | -0.14% | 106.30 | 3.40% |
| ANZ | ANZPI | Capital Notes 6 | 20-Mar-28 | 3.00% | 2.50% | 0.04% | 103.35 | 3.00% |
| Suncorp | SUNPI | Capital Notes 4 | 17-Jun-28 | 2.90% | 2.69% | -0.21% | 101.11 | 2.95% |
| Macquarie Bank | MBLPD | Capital Notes 3 | 7-Dec-28 | 2.90% | 2.68% | -0.05% | 101.35 | 2.94% |
| Westpac | WBCPK | Capital Notes 8 | 21-Sep-29 | 2.90% | 2.58% | 0.09% | 102.75 | 2.92% |
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% | 3.41% | -0.02% | 100.74 | 3.46% |
| Crown | CWNHB | Sub Notes 2 | 23-Apr-75 | 4.00% | 4.34% | 0.11% | 95.20 | 4.29% |
| Nufarm | NFNG | Step Up | Perpetual | 3.90% | 4.68% | 0.01% | 89.30 | 4.76% |
| Omni Bridgeway | OBLHA | Bond | 31/01/2022 | 5.20% | 4.15% | 0.91% | 101.65 | 5.24% |
| Ramsay Health Care | RHCPA | Perpetual PS | Perpetual | 4.85% | 4.84% | 0.00% | 106.06 | 4.92% |
** “Clean” running yield. Includes franking credits if present.