Summary: Trading margins unchanged; rises outweigh falls by 4:3; sector trading margin well below lower bound of “normal” trading range; margin of CGFPB largest mover over week, ANZ announces new listed capital note, redemption of ANZPEs.
Click here for the latest daily trading margins, running yields and charts.
The median trading margin of ASX-listed hybrids finished the week unchanged even as the number of securities with higher spreads to BBSW outnumbered securities with lower spreads by a ratio of about 4:3. At the end of the week, the median trading margin had returned to its starting point at 2.31%, a reading which is 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 -10bps to +12bps. Ignoring short-dated securities, the margin of Challenger Capital Notes 2 (CGFPB, +27bps) had the largest (absolute) change over the week.
ANZ announced it will issue a new listed capital note on Tuesday. The new hybrids will fund the redemption of ANZ Capital Notes 2 (ANZPE) which will cease trading on 14 March. The new hybrid’s margin to BBSW was set at 2.70% on Friday.
The current 3-month BBSW rate is 8bps 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% | 5.34% | 2.23% | 100.55 | 3.99% |
| ANZ Banking Group | ANZPE | Capital Notes 2 | 24-Mar-22 | 3.25% | 11.22% | 4.63% | 100.63 | 3.54% |
| Suncorp | SUNPF | Capital Notes | 17-Jun-22 | 4.10% | 1.21% | 0.10% | 101.68 | 4.14% |
| Nat. Aust. Bank | NABPD | Capital Notes 2 | 7-Jul-22 | 4.95% | 1.83% | 0.46% | 101.80 | 4.97% |
| Westpac | WBCPE | Capital Notes 2 | 23-Sep-22 | 3.05% | 1.19% | -0.12% | 101.60 | 3.10% |
| CBA | CBAPD | PERLS 7 | 15-Dec-22 | 2.80% | 1.78% | 0.22% | 101.35 | 2.86% |
| ANZ | ANZPF | Capital Notes 3 | 24-Mar-23 | 3.60% | 1.84% | 0.05% | 103.55 | 3.79% |
| Challenger | CGFPB | Capital Notes 2 | 22-May-23 | 4.40% | 2.58% | 0.27% | 102.21 | 4.38% |
| Insurance Australia | IAGPD | Capital Notes | 15-Jun-23 | 4.70% | 2.29% | -0.07% | 104.00 | 4.63% |
| ANZ | ANZPG | Capital Notes 4 | 20-Mar-24 | 4.70% | 1.59% | -0.16% | 107.07 | 4.50% |
| CBA | CBAPH | PERLS 11 | 26-Apr-24 | 3.70% | 1.79% | 0.06% | 104.71 | 3.63% |
| Bendigo Bank | BENPG | CPS 4 | 13-Jun-24 | 3.75% | 2.21% | 0.20% | 104.14 | 3.70% |
| Suncorp | SUNPG | Capital Notes 2 | 17-Jun-24 | 3.65% | 2.31% | -0.09% | 103.65 | 3.62% |
| Westpac | WBCPI | Capital Notes 6 | 30-Jul-24 | 3.70% | 1.80% | -0.11% | 105.10 | 3.62% |
| Bank of Qld | BOQPE | Capital Notes | 15-Aug-24 | 3.75% | 2.25% | 0.16% | 103.60 | 3.70% |
| Macquarie Group | MQGPC | Capital Notes 3 | 16-Dec-24 | 4.00% | 2.12% | -0.16% | 105.64 | 3.88% |
| ANZ | ANZPH | Capital Notes 5 | 20-Mar-25 | 3.80% | 1.72% | -0.03% | 106.70 | 3.66% |
| CBA | CBAPG | PERLS 10 | 15-Apr-25 | 3.40% | 1.98% | -0.05% | 104.86 | 3.34% |
| Westpac | WBCPH | Capital Notes 5 | 22-Sep-25 | 3.20% | 1.92% | -0.15% | 104.82 | 3.14% |
| AMP Group | AMPPB | Capital Notes 2 | 16-Dec-25 | 4.50% | 3.97% | 0.07% | 102.70 | 4.49% |
| Macquarie Bank | MBLPC | Capital Notes 2 | 22-Dec-25 | 4.70% | 2.33% | 0.02% | 108.97 | 4.41% |
| Challenger | CGFPC | Capital Notes 3 | 25-May-26 | 4.60% | 3.00% | -0.03% | 106.00 | 4.41% |
| Nat. Aust. Bank | NABPF | Capital Notes 3 | 17-Jun-26 | 4.00% | 2.10% | -0.04% | 108.20 | 3.80% |
| Suncorp | SUNPH | Capital Notes 3 | 17-Jun-26 | 3.00% | 2.66% | 0.06% | 101.92 | 3.04% |
| Macquarie Group | MQGPD | Capital Notes 4 | 10-Sep-26 | 4.15% | 2.47% | -0.08% | 107.56 | 3.96% |
| CBA | CBAPJ | PERLS 13 | 20-Oct-26 | 2.75% | 2.29% | 0.01% | 102.50 | 2.77% |
| Latitude | LFSPA | Capital Notes | 27-Oct-26 | 4.75% | 4.69% | -0.06% | 101.00 | 4.81% |
| Westpac | WBCPJ | Capital Notes 7 | 22-Mar-27 | 3.40% | 2.37% | 0.06% | 105.25 | 3.32% |
| CBA | CBAPI | PERLS 12 | 20-Apr-27 | 3.00% | 2.28% | 0.00% | 103.93 | 2.98% |
| Bank of Qld | BOQPF | Capital Notes 2 | 14-May-27 | 3.80% | 2.80% | 0.08% | 104.66 | 3.71% |
| Bendigo Bank | BENPH | Capital Notes | 15-Jun-27 | 3.80% | 2.98% | 0.09% | 104.57 | 3.73% |
| Macquarie Group | MQGPE | Capital Notes 5 | 20-Sep-27 | 2.90% | 2.62% | 0.07% | 101.88 | 2.94% |
| Nat. Aust. Bank | NABPH | Capital Notes 5 | 17-Dec-27 | 3.50% | 2.56% | -0.01% | 105.45 | 3.41% |
| ANZ | ANZPI | Capital Notes 6 | 20-Mar-28 | 3.00% | 2.51% | 0.15% | 103.20 | 3.00% |
| Suncorp | SUNPI | Capital Notes 4 | 17-Jun-28 | 2.90% | 2.77% | -0.13% | 101.30 | 2.96% |
| Macquarie Bank | MBLPD | Capital Notes 3 | 7-Dec-28 | 2.90% | 2.67% | 0.00% | 101.30 | 2.94% |
| Westpac | WBCPK | Capital Notes 8 | 21-Sep-29 | 2.90% | 2.52% | 0.08% | 103.00 | 2.91% |
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% | -0.03% | 100.60 | 3.46% |
| Crown | CWNHB | Sub Notes 2 | 23-Apr-75 | 4.00% | 4.24% | -0.08% | 97.51 | 4.22% |
| Nufarm | NFNG | Step Up | Perpetual | 3.90% | 4.61% | 0.02% | 90.30 | 4.69% |
| Omni Bridgeway | OBLHA | Bond | 31/01/2022 | 5.20% | 4.01% | -1.13% | 101.50 | 5.23% |
| Ramsay Health Care | RHCPA | Perpetual PS | Perpetual | 4.85% | 4.85% | 0.04% | 105.50 | 4.93% |
** “Clean” running yield. Includes franking credits if present.