Summary:
The hybrid securities market remained active this week, buoyed by global credit momentum and investor appetite for yield. Offshore, U.S. corporate bond issuance surged past $56 billion, marking the busiest week since March. Issuers moved swiftly to lock in funding ahead of anticipated rate cuts, compressing credit spreads and drawing demand even for lower-rated names. This global backdrop provided a supportive tone for domestic hybrids.
On the ASX, trading margins and running yields continued to reflect a bifurcated landscape. High-spread instruments such as AMP Group’s AMPPB and Macquarie’s MBLPC offered margins of 23% and 19% respectively, underscoring investor caution around call risk and credit outlook. Meanwhile, Judo Capital’s JDOPA maintained a robust 5.00% margin with a running yield of 9.55%, positioning it as a standout among newer bank-issued hybrids.
Non-standard structures also drew attention. Nufarm’s NFNG, a step-up perpetual, delivered an 8.62% yield, while Ramsay Health Care’s RHCPA preference shares offered 8.13%, reflecting steady demand for perpetual income instruments.
Overall, the week highlighted a continued search for yield amid shifting rate expectations, with investors balancing credit quality, call risk, and structural nuances. As global central banks signal policy pivots, hybrid pricing dynamics may evolve further—making issuer fundamentals and margin discipline key watchpoints heading into Q4.
Figure 1: Hybrids: Median Sector Margin
ASX-Listed Hybrids
COMPANY CODE HYBRID TYPE MATURITY/
CALL
DATEMARGIN
INCL. CREDITSTRADING
MARGINDAY
CHANGEDAY
CLOSERUNNING
YIELD**Westpac WBCPH Capital Notes 5 22/09/2025 3.20% 56017.00% 55482.53% 100.7 7.12% AMP Group AMPPB Capital Notes 2 16/12/2025 4.50% 23.00% 2.13% 100.33 8.38% Macquarie Bank MBLPC Capital Notes 2 22/12/2025 4.70% 19.00% 1.64% 100.531 8.54% Challenger CGFPC Capital Notes 3 25/05/2026 4.60% 10.00% 0.41% 102.15 8.41% Nat Aust Bank NABPF Capital Notes 3 17/06/2026 4.00% 8.00% 0.33% 101.431 7.78% Suncorp SUNPH Capital Notes 3 17/06/2026 3.00% 8.00% 0.31% 100.69 6.76% Macquarie Group MQGPD Capital Notes 4 10/09/2026 4.15% 6.00% 0.19% 102.05 7.85% CBA CBAPJ PERLS 13 20/10/2026 2.75% 5.00% 0.18% 101.02 6.48% Latitude LFSPA Capital Notes 27/10/2026 4.75% 13.00% 0.33% 98.5 8.98% Westpac WBCPJ Capital Notes 7 22/03/2027 3.40% 6.00% 0.15% 102.23 7.23% CBA CBAPI PERLS 12 20/04/2027 3.00% 4.00% 0.11% 101.95 6.68% Bank of Queensland BOQPF Capital Notes 2 14/05/2027 3.80% 5.00% 0.13% 103.36 7.50% Bendigo Bank BENPH Capital Notes 15/06/2027 3.80% 5.00% 0.11% 103.05 7.44% Macquarie Group MQGPE Capital Notes 5 20/09/2027 2.90% 4.00% 0.07% 102.1 6.53% Nat Aust Bank NABPH Capital Notes 5 17/12/2027 3.50% 4.00% 0.08% 103.35 7.10% ANZ Bank AN3PI Capital Notes 6 20/03/2028 3.00% 3.00% 0.05% 102.503 6.58% CBA CBAPL PERLS 15 15/06/2028 2.85% 3.00% 0.06% 102.64 6.47% Suncorp SUNPI Capital Notes 4 17/06/2028 2.90% 3.00% 0.06% 102.88 6.51% Westpac WBCPL Capital Notes 9 22/09/2028 3.40% 4.00% 0.06% 104.7 7.04% Macquarie Bank MBLPD Capital Notes 3 7/12/2028 2.90% 3.00% 0.04% 102.66 6.50% Bank of Queensland BOQPG Capital Notes 3 15/12/2028 3.40% 3.00% 0.06% 104.1 6.95% Judo Capital JDOPA Capital Notes 16/02/2029 6.50% 5.00% 0.07% 112 9.55% ANZ Bank AN3PJ Capital Notes 7 20/03/2029 2.70% 3.00% 0.03% 103.28 6.22% Challenger CGFPD Capital Notes 4 25/05/2029 3.60% 3.00% 0.05% 105.56 7.09% CBA CBAPK PERLS 14 15/06/2029 2.75% 3.00% 0.04% 103.13 6.34% Insurance Australia IAGPE Capital Notes 2 15/06/2029 3.50% 4.00% 0.04% 104.75 7.08% Macquarie Group MQGPF Capital Notes 6 12/09/2029 3.70% 3.00% 0.04% 106.33 7.07% Nat Aust Bank NABPI Capital Notes 6 17/09/2029 3.15% 3.00% 0.04% 105.4 6.60% Westpac WBCPK Capital Notes 8 21/09/2029 2.90% 4.00% 0.05% 103.87 6.57% ANZ Bank AN3PK Capital Notes 8 20/03/2030 2.75% 3.00% 0.03% 103.35 6.27% CBA CBAPM PERLS 16 17/06/2030 3.00% 2.00% 0.04% 106 6.41% Suncorp SUNPJ Capital Notes 5 17/06/2030 2.80% 3.00% 0.04% 104.22 6.32% Nat Aust Bank NABPJ Capital Notes 7 17/09/2030 2.80% 3.00% 0.03% 104.6 6.30% Bendigo Bank BENPI Capital Notes 2 13/12/2030 3.20% 3.00% 0.04% 104.5 6.72% Insurance Australia IAGPF Capital Notes 3 15/12/2030 3.20% 3.00% 0.03% 104.7 6.76% ANZ Bank AN3PL Capital Notes 9 20/03/2031 2.90% 3.00% 0.02% 104.3 6.36% Westpac WBCPM Capital Notes 10 22/09/2031 3.10% 3.00% 0.03% 105.4 6.68% Macquarie Group MQGPG Capital Notes 7 15/12/2031 2.65% 3.00% 0.03% 102.82 6.23% Nat Aust Bank NABPK Capital Notes 8 17/03/2032 2.60% 2.00% 0.03% 104.45 6.10% ASX-Listed Hybrids (Non-standard)
COMPANY CODE BOND TYPE CALL DATE ISSUE MARGIN (inc frank) TRADING MARGIN DAY CLOSING PRICE RUNNING YIELD Nufarm NFNG Step Up Perpetual 3.90% 5.06% 0.05% 91.39 8.62% Ramsay Health Care RHCPA Preference Share Perpetual 4.85% 4.57% 0.05% 108.66 8.13%