Summary: Margins rise on average; all margins rise; margins of LFSPA, ANZPH largest mover over week; new Westpac hybrid likely coming; 3-month BBSW up 6bps.
The median margin of ASX-listed hybrids to BBSW rose for a sixth consecutive week as spreads widened for all securities in the sample. At the end of the week, the median trading margin was 3.08%, up 19bps from the previous week’s closing value.
Margins of the majority of hybrids varied within a range of zero to +65bps. Ignoring short-dated securities, the margins of Latitude Financial Capital Notes (LFSPA, +165bps) and ANZ Capital Notes (ANZPH, +106bps) had the largest (absolute) changes over the week.
Westpac announced early in the week it is considering a new offer of capital notes. The offer may include a reinvestment offer for some Capital Notes 6 (WBCPI) holders.
3-month BBSW finished the week 6bps higher at 4.41%. 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.
** “Clean” running yield. Includes franking credits if present.
ASX-LISTED HYBRIDS
| COMPANY | CODE | HYBRID TYPE | MATURITY/ CALL DATE | MARGIN INCL. CREDITS | TRADING MARGIN | WEEK CHANGE | WEEK CLOSE | RUNNING YIELD** |
|---|---|---|---|---|---|---|---|---|
| ANZ Banking Group | AN3PG | Capital Notes 4 | 20-Mar-24 | 4.70% | 3.01% | 0.76% | 101.90 | 9.04% |
| CBA | CBAPH | PERLS 11 | 26-Apr-24 | 3.70% | 2.52% | 1.01% | 101.80 | 8.05% |
| Bendigo Bank | BENPG | CPS 4 | 13-Jun-24 | 3.75% | 3.56% | 0.50% | 101.45 | 8.14% |
| Suncorp | SUNPG | Capital Notes 2 | 17-Jun-24 | 3.65% | 2.31% | 0.70% | 102.00 | 7.98% |
| Westpac | WBCPI | Capital Notes 6 | 30-Jul-24 | 3.70% | 2.47% | 0.23% | 102.10 | 8.03% |
| Bank of Queensland | BOQPE | Capital Notes | 15-Aug-24 | 3.75% | 2.53% | 0.30% | 100.90 | 8.07% |
| Macquarie Group | MQGPC | Capital Notes 3 | 16-Dec-24 | 4.00% | 2.48% | 0.17% | 102.80 | 8.26% |
| ANZ Banking Group | AN3PH | Capital Notes 5 | 20-Mar-25 | 3.80% | 2.50% | 1.06% | 102.93 | 8.06% |
| CBA | CBAPG | PERLS 10 | 15-Apr-25 | 3.40% | 2.67% | 0.37% | 102.30 | 7.71% |
| Westpac | WBCPH | Capital Notes 5 | 22-Sep-25 | 3.20% | 2.76% | 0.41% | 101.95 | 7.53% |
| AMP Group | AMPPB | Capital Notes 2 | 16-Dec-25 | 4.50% | 3.70% | 0.52% | 102.90 | 8.75% |
| Macquarie Bank | MBLPC | Capital Notes 2 | 22-Dec-25 | 4.70% | 2.89% | 0.18% | 104.70 | 8.78% |
| Challenger | CGFPC | Capital Notes 3 | 25-May-26 | 4.60% | 3.44% | 0.20% | 104.70 | 8.75% |
| Nat Aust Bank | NABPF | Capital Notes 3 | 17-Jun-26 | 4.00% | 2.60% | 0.15% | 104.60 | 8.13% |
| Suncorp | SUNPH | Capital Notes 3 | 17-Jun-26 | 3.00% | 2.96% | 0.16% | 101.42 | 7.37% |
| Macquarie Group | MQGPD | Capital Notes 4 | 10-Sep-26 | 4.15% | 2.81% | 0.34% | 104.71 | 8.26% |
| CBA | CBAPJ | PERLS 13 | 20-Oct-26 | 2.75% | 2.82% | 0.17% | 101.20 | 7.14% |
| Latitude | LFSPA | Capital Notes | 27-Oct-26 | 4.75% | 13.04% | 1.65% | 84.00 | 10.94% |
| Westpac | WBCPJ | Capital Notes 7 | 22-Mar-27 | 3.40% | 2.97% | 0.21% | 102.57 | 7.68% |
| CBA | CBAPI | PERLS 12 | 20-Apr-27 | 3.00% | 2.92% | 0.24% | 101.68 | 7.36% |
| Bank of Queensland | BOQPF | Capital Notes 2 | 14-May-27 | 3.80% | 3.44% | 0.37% | 101.33 | 8.09% |
| Bendigo Bank | BENPH | Capital Notes | 15-Jun-27 | 3.80% | 3.36% | 0.17% | 102.90 | 8.07% |
| Macquarie Group | MQGPE | Capital Notes 5 | 20-Sep-27 | 2.90% | 3.06% | 0.21% | 100.78 | 7.31% |
| Nat Aust Bank | NABPH | Capital Notes 5 | 17-Dec-27 | 3.50% | 2.98% | 0.24% | 103.20 | 7.74% |
| ANZ Banking Group | AN3PI | Capital Notes 6 | 20-Mar-28 | 3.00% | 3.04% | 0.19% | 101.30 | 7.38% |
| CBA | CBAPL | PERLS 15 | 15-Jun-28 | 2.85% | 3.10% | 0.15% | 100.67 | 7.28% |
| Suncorp | SUNPI | Capital Notes 4 | 17-Jun-28 | 2.90% | 3.37% | 0.28% | 99.88 | 7.39% |
| Westpac | WBCPL | Capital Notes 9 | 22-Sep-28 | 3.40% | 3.20% | 0.29% | 102.25 | 7.71% |
| Macquarie Bank | MBLPD | Capital Notes 3 | 7-Dec-28 | 2.90% | 3.03% | 0.35% | 101.06 | 7.30% |
| Bank of Queensland | BOQPG | Capital Notes 3 | 15-Dec-28 | 3.40% | 3.81% | 0.19% | 100.23 | 7.88% |
| ANZ Banking Group | AN3PJ | Capital Notes 7 | 20-Mar-29 | 2.70% | 3.18% | 0.20% | 99.60 | 7.20% |
| Challenger | CGFPD | Capital Notes 4 | 25-May-29 | 3.60% | 3.42% | 0.09% | 102.94 | 7.90% |
| CBA | CBAPK | PERLS 14 | 15-Jun-29 | 2.75% | 3.15% | 0.05% | 100.00 | 7.23% |
| Insurance Australia | IAGPE | Capital Notes 2 | 15-Jun-29 | 3.50% | 3.51% | 0.24% | 101.60 | 7.86% |
| Macquarie Group | MQGPF | Capital Notes 6 | 12-Sep-29 | 3.70% | 3.29% | 0.04% | 103.35 | 7.92% |
| Nat Aust Bank | NABPI | Capital Notes 6 | 17-Sep-29 | 3.15% | 3.15% | 0.19% | 101.65 | 7.51% |
| Westpac | WBCPK | Capital Notes 8 | 21-Sep-29 | 2.90% | 3.17% | 0.20% | 100.43 | 7.34% |
| ANZ Banking Group | AN3PK | Capital Notes 8 | 20-Mar-30 | 2.75% | 3.19% | 0.15% | 99.62 | 7.25% |
| CBA | CBAPM | PERLS 16 | 17-Jun-30 | 3.00% | 3.12% | 0.15% | 101.19 | 7.40% |
| Nat Aust Bank | NABPJ | Capital Notes 7 | 17-Sep-30 | 2.80% | 3.15% | 0.13% | 100.10 | 7.27% |
ASX-LISTED HYBRIDS (NON-STANDARD)
| COMPANY | CODE | HYBRID TYPE | MATURITY/ CALL DATE | MARGIN INCL. CREDITS | TRADING MARGIN | WEEK CHANGE | WEEK CLOSE | RUNNING YIELD** |
|---|---|---|---|---|---|---|---|---|
| Nufarm | NFNG | Step Up | Perpetual | 3.90% | 5.29% | 0.01% | 89.74 | 9.69% |
| Ramsay Health Care | RHCPA | Perpetual PS | Perpetual | 4.85% | 4.85% | -0.04% | 104.20 | 9.26% |