Summary: Trading margins declines; falls outweigh rises by 2:1; sector trading margin well below lower bound of “normal” trading range; margins of BENPG, SUNPG largest movers over week.
Click here for the latest daily trading margins, running yields and charts.
The median trading margin of ASX-listed hybrids fell back as the number of securities with lower spreads to BBSW outnumbered securities with higher spreads by a ratio of about 2:1. By the end of the week, the median trading margin had declined from 2.43% to 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 -25bps to +9bps. Ignoring short-dated securities, the margins of Bendigo CPS 4 (BENPG, -36bps) and Suncorp Capital Notes 2 (SUNPG, -49bps) had the largest (absolute) changes over the week.
The current 3-month BBSW rate is 7bps 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 | 20-Feb-22 | 3.90% | 3.11% | -0.32% | 100.74 | 3.97% |
| ANZ Banking Group | ANZPE | Capital Notes 2 | 24-Mar-22 | 3.25% | 6.59% | 3.38% | 100.91 | 3.50% |
| Suncorp | SUNPF | Capital Notes | 17-Jun-22 | 4.10% | 1.12% | 0.41% | 101.69 | 4.13% |
| Nat. Aust. Bank | NABPD | Capital Notes 2 | 7-Jul-22 | 4.95% | 1.37% | 0.07% | 101.95 | 4.95% |
| Westpac | WBCPE | Capital Notes 2 | 23-Sep-22 | 3.05% | 1.32% | 0.04% | 101.50 | 3.09% |
| CBA | CBAPD | PERLS 7 | 15-Dec-22 | 2.80% | 1.56% | 0.32% | 101.50 | 2.84% |
| ANZ | ANZPF | Capital Notes 3 | 24-Mar-23 | 3.60% | 1.79% | 0.18% | 103.55 | 3.76% |
| Challenger | CGFPB | Capital Notes 2 | 22-May-23 | 4.40% | 2.31% | -0.28% | 102.50 | 4.36% |
| Insurance Australia | IAGPD | Capital Notes | 15-Jun-23 | 4.70% | 2.35% | -0.22% | 103.86 | 4.63% |
| ANZ | ANZPG | Capital Notes 4 | 20-Mar-24 | 4.70% | 1.75% | -0.12% | 106.70 | 4.50% |
| CBA | CBAPH | PERLS 11 | 26-Apr-24 | 3.70% | 1.73% | -0.22% | 104.81 | 3.62% |
| Bendigo Bank | BENPG | CPS 4 | 13-Jun-24 | 3.75% | 2.01% | -0.36% | 104.55 | 3.68% |
| Suncorp | SUNPG | Capital Notes 2 | 17-Jun-24 | 3.65% | 2.39% | 0.49% | 103.41 | 3.62% |
| Westpac | WBCPI | Capital Notes 6 | 30-Jul-24 | 3.70% | 1.91% | -0.13% | 104.80 | 3.62% |
| Bank of Qld | BOQPE | Capital Notes | 15-Aug-24 | 3.75% | 2.09% | -0.19% | 103.95 | 3.67% |
| Macquarie Group | MQGPC | Capital Notes 3 | 16-Dec-24 | 4.00% | 2.29% | -0.12% | 105.16 | 3.89% |
| ANZ | ANZPH | Capital Notes 5 | 20-Mar-25 | 3.80% | 1.75% | -0.14% | 106.57 | 3.65% |
| CBA | CBAPG | PERLS 10 | 15-Apr-25 | 3.40% | 2.03% | -0.06% | 104.67 | 3.33% |
| Westpac | WBCPH | Capital Notes 5 | 22-Sep-25 | 3.20% | 2.07% | -0.10% | 104.28 | 3.15% |
| AMP Group | AMPPB | Capital Notes 2 | 16-Dec-25 | 4.50% | 3.90% | -0.16% | 102.87 | 4.47% |
| Macquarie Bank | MBLPC | Capital Notes 2 | 22-Dec-25 | 4.70% | 2.31% | -0.24% | 109.00 | 4.40% |
| Challenger | CGFPC | Capital Notes 3 | 25-May-26 | 4.60% | 3.04% | 0.11% | 106.98 | 4.41% |
| Nat. Aust. Bank | NABPF | Capital Notes 3 | 17-Jun-26 | 4.00% | 2.13% | 0.02% | 108.01 | 3.79% |
| Suncorp | SUNPH | Capital Notes 3 | 17-Jun-26 | 3.00% | 2.60% | 0.06% | 102.11 | 3.02% |
| Macquarie Group | MQGPD | Capital Notes 4 | 10-Sep-26 | 4.15% | 2.55% | -0.09% | 107.17 | 3.96% |
| CBA | CBAPJ | PERLS 13 | 20-Oct-26 | 2.75% | 2.28% | -0.01% | 102.48 | 2.76% |
| Latitude | LFSPA | Capital Notes | 27-Oct-26 | 4.75% | 4.53% | -0.22% | 101.46 | 4.77% |
| Westpac | WBCPJ | Capital Notes 7 | 22-Mar-27 | 3.40% | 2.31% | -0.11% | 105.47 | 3.31% |
| CBA | CBAPI | PERLS 12 | 20-Apr-27 | 3.00% | 2.28% | -0.07% | 103.89 | 2.97% |
| Bank of Qld | BOQPF | Capital Notes 2 | 14-May-27 | 3.80% | 2.73% | -0.15% | 104.96 | 3.69% |
| Bendigo Bank | BENPH | Capital Notes | 15-Jun-27 | 3.80% | 2.88% | -0.21% | 104.95 | 3.71% |
| Macquarie Group | MQGPE | Capital Notes 5 | 20-Sep-27 | 2.90% | 2.54% | -0.10% | 102.20 | 2.92% |
| Nat. Aust. Bank | NABPH | Capital Notes 5 | 17-Dec-27 | 3.50% | 2.57% | -0.02% | 105.35 | 3.41% |
| ANZ | ANZPI | Capital Notes 6 | 20-Mar-28 | 3.00% | 2.36% | -0.11% | 103.95 | 2.97% |
| Suncorp | SUNPI | Capital Notes 4 | 17-Jun-28 | 2.90% | 2.64% | -0.26% | 102.00 | 2.92% |
| Macquarie Bank | MBLPD | Capital Notes 3 | 7-Dec-28 | 2.90% | 2.67% | -0.05% | 101.87 | 2.93% |
| Westpac | WBCPK | Capital Notes 8 | 21-Sep-29 | 2.90% | 2.44% | -0.14% | 103.48 | 2.88% |
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% | 0.00% | 100.41 | 3.48% |
| Crown | CWNHB | Sub Notes 2 | 23-Apr-75 | 4.00% | 4.32% | -0.06% | 96.15 | 4.26% |
| Nufarm | NFNG | Step Up | Perpetual | 3.90% | 4.59% | 0.09% | 90.05 | 4.66% |
| Omni Bridgeway | OBLHA | Bond | 31/01/2022 | 5.20% | 5.13% | -0.20% | 100.50 | 5.26% |
| Ramsay Health Care | RHCPA | Perpetual PS | Perpetual | 4.85% | 4.81% | 0.01% | 105.88 | 4.88% |
| Suncorp-Metway | SBKHB | Income Securities | Perpetual | 0.75% | 0.76% | 0.00% | 99.73 | 0.82% |
** “Clean” running yield. Includes franking credits if present.