Summary: Margins rise on average; rises outweigh falls by 11:9; margins of ANZPH, CBAPG largest movers over week; Judo issue announced; 3-month BBSW up 7bps.
The median margin of ASX-listed hybrids to BBSW rose for a third consecutive week as the number of securities with wider spreads to BBSW outweighed securities with narrower spreads by a ratio of about 11:9. At the end of the week, the median trading margin was 2.81%, up 1bp from the previous week’s closing value.
Margins of the majority of hybrids varied within a range of -27bps to +17bps. Ignoring short-dated securities, the margins of ANZ Capital Notes 5 (ANZPH, -56bps) and Commonwealth Bank PERLS 10 (CBAPG, -32bps) had the largest (absolute) changes over the week.
Judo Capital has now announced its flagged issue of capital notes. Details to follow shortly.
3-month BBSW finished the week 7bps higher at 4.22%. 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% | 1.31% | -0.49% | 102.20 | 8.79% |
| CBA | CBAPH | PERLS 11 | 26-Apr-24 | 3.70% | 1.68% | -0.48% | 101.85 | 7.83% |
| Bendigo Bank | BENPG | CPS 4 | 13-Jun-24 | 3.75% | 2.38% | -0.22% | 101.75 | 7.89% |
| Suncorp | SUNPG | Capital Notes 2 | 17-Jun-24 | 3.65% | 2.50% | 0.58% | 101.51 | 7.80% |
| Westpac | WBCPI | Capital Notes 6 | 30-Jul-24 | 3.70% | 2.11% | 0.22% | 101.99 | 7.81% |
| Bank of Queensland | BOQPE | Capital Notes | 15-Aug-24 | 3.75% | 2.87% | 0.19% | 102.24 | 7.90% |
| Macquarie Group | MQGPC | Capital Notes 3 | 16-Dec-24 | 4.00% | 2.29% | -0.17% | 102.70 | 8.05% |
| ANZ Banking Group | AN3PH | Capital Notes 5 | 20-Mar-25 | 3.80% | 2.07% | -0.56% | 103.10 | 7.83% |
| CBA | CBAPG | PERLS 10 | 15-Apr-25 | 3.40% | 2.38% | -0.32% | 102.30 | 7.50% |
| Westpac | WBCPH | Capital Notes 5 | 22-Sep-25 | 3.20% | 2.40% | -0.19% | 102.15 | 7.30% |
| AMP Group | AMPPB | Capital Notes 2 | 16-Dec-25 | 4.50% | 3.15% | 0.17% | 103.52 | 8.48% |
| Macquarie Bank | MBLPC | Capital Notes 2 | 22-Dec-25 | 4.70% | 2.45% | -0.25% | 105.20 | 8.53% |
| Challenger | CGFPC | Capital Notes 3 | 25-May-26 | 4.60% | 3.46% | -0.02% | 104.20 | 8.57% |
| Nat Aust Bank | NABPF | Capital Notes 3 | 17-Jun-26 | 4.00% | 2.47% | -0.12% | 104.50 | 7.92% |
| Suncorp | SUNPH | Capital Notes 3 | 17-Jun-26 | 3.00% | 2.64% | 0.17% | 101.72 | 7.14% |
| Macquarie Group | MQGPD | Capital Notes 4 | 10-Sep-26 | 4.15% | 2.43% | -0.26% | 105.27 | 8.00% |
| CBA | CBAPJ | PERLS 13 | 20-Oct-26 | 2.75% | 2.73% | -0.22% | 101.01 | 6.94% |
| Latitude | LFSPA | Capital Notes | 27-Oct-26 | 4.75% | 11.77% | -0.08% | 85.50 | 10.47% |
| Westpac | WBCPJ | Capital Notes 7 | 22-Mar-27 | 3.40% | 2.75% | 0.09% | 102.75 | 7.45% |
| CBA | CBAPI | PERLS 12 | 20-Apr-27 | 3.00% | 2.77% | 0.08% | 101.70 | 7.14% |
| Bank of Queensland | BOQPF | Capital Notes 2 | 14-May-27 | 3.80% | 3.44% | -0.11% | 102.90 | 7.90% |
| Bendigo Bank | BENPH | Capital Notes | 15-Jun-27 | 3.80% | 2.97% | -0.23% | 103.60 | 7.80% |
| Macquarie Group | MQGPE | Capital Notes 5 | 20-Sep-27 | 2.90% | 2.53% | 0.30% | 102.06 | 7.01% |
| Nat Aust Bank | NABPH | Capital Notes 5 | 17-Dec-27 | 3.50% | 2.79% | 0.11% | 103.40 | 7.51% |
| ANZ Banking Group | AN3PI | Capital Notes 6 | 20-Mar-28 | 3.00% | 2.73% | -0.03% | 101.93 | 7.12% |
| CBA | CBAPL | PERLS 15 | 15-Jun-28 | 2.85% | 2.77% | -0.12% | 101.40 | 7.02% |
| Suncorp | SUNPI | Capital Notes 4 | 17-Jun-28 | 2.90% | 2.86% | 0.13% | 101.20 | 7.08% |
| Westpac | WBCPL | Capital Notes 9 | 22-Sep-28 | 3.40% | 2.83% | 0.00% | 103.15 | 7.43% |
| Macquarie Bank | MBLPD | Capital Notes 3 | 7-Dec-28 | 2.90% | 2.90% | -0.07% | 101.19 | 7.08% |
| Bank of Queensland | BOQPG | Capital Notes 3 | 15-Dec-28 | 3.40% | 3.37% | 0.01% | 101.35 | 7.57% |
| ANZ Banking Group | AN3PJ | Capital Notes 7 | 20-Mar-29 | 2.70% | 2.86% | -0.07% | 100.40 | 6.93% |
| Challenger | CGFPD | Capital Notes 4 | 25-May-29 | 3.60% | 3.14% | -0.29% | 103.58 | 7.63% |
| CBA | CBAPK | PERLS 14 | 15-Jun-29 | 2.75% | 2.91% | -0.07% | 100.51 | 6.98% |
| Insurance Australia | IAGPE | Capital Notes 2 | 15-Jun-29 | 3.50% | 3.21% | 0.12% | 102.40 | 7.59% |
| Macquarie Group | MQGPF | Capital Notes 6 | 12-Sep-29 | 3.70% | 3.20% | 0.08% | 103.35 | 7.71% |
| Nat Aust Bank | NABPI | Capital Notes 6 | 17-Sep-29 | 3.15% | 2.86% | -0.09% | 102.41 | 7.24% |
| Westpac | WBCPK | Capital Notes 8 | 21-Sep-29 | 2.90% | 2.89% | 0.00% | 101.11 | 7.08% |
| ANZ Banking Group | AN3PK | Capital Notes 8 | 20-Mar-30 | 2.75% | 3.00% | 0.02% | 99.99 | 7.01% |
| CBA | CBAPM | PERLS 16 | 17-Jun-30 | 3.00% | 2.91% | 0.04% | 101.65 | 7.15% |
| Nat Aust Bank | NABPJ | Capital Notes 7 | 17-Sep-30 | 2.80% | 2.98% | 0.05% | 100.41 | 7.04% |
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% | 5.01% | 0.13% | 91.50 | 9.22% |
| Ramsay Health Care | RHCPA | Perpetual PS | Perpetual | 4.85% | 4.84% | 0.05% | 103.60 | 9.06% |