Summary-
Australian Bank Hybrids: Market Commentary as at 30 June 2025
As the financial year closed, the Australian bank hybrid market remained resilient, offering investors a broad spectrum of yield opportunities amid a shifting regulatory landscape.
Performance Snapshot Running yields across ASX-listed bank hybrids ranged from 6.13% (NABPK, Mar 2032) to a market-leading 9.38% (JDOPA, Feb 2029). Short-dated securities maturing in late 2025 and early 2026 continued to deliver strong income, with yields between 7% and 8.5%, while mid-term notes (2027–2029) generally offered 6.5% to 7.8%.
Top Yielders
- Judo Capital (JDOPA) stood out with the highest yield at 9.38%, trading at a premium (~112), reflecting investor appetite for its elevated margin.
- Latitude (LFSPA) followed closely with a 9.03% yield, though its steep 11.57% trading margin and discounted price (~96.5) suggest a higher risk profile.
- Macquarie Bank (MBLPC) offered a compelling 8.40% yield on a shorter maturity (Dec 2025), appealing to income-focused investors seeking near-term returns.
Market Trends Trading margins were largely concentrated between 2% and 5%, indicating stable risk premiums across most issuers. Notably, Latitude’s outlier margin underscores market caution around credit quality. Meanwhile, day-to-day price movements were modest, with most hybrids posting changes under 0.1%, reflecting subdued volatility.
Looking Ahead With APRA’s phased withdrawal of Additional Tier 1 hybrids by 2032, investors are gradually repositioning portfolios. While hybrids remain attractive for their yield and franking benefits, the market is expected to evolve toward alternative income instruments over the coming years.
ASX-Listed Hybrids Date -30.06.25
| COMPANY | CODE | HYBRID TYPE | MATURITY/ CALL DATE | MARGIN INCL. CREDITS | TRADING MARGIN | DAY CHANGE | DAY CLOSE | RUNNING YIELD** |
|---|---|---|---|---|---|---|---|---|
| Westpac | WBCPH | Capital Notes 5 | 22/09/2025 | 3.20% | 23.40% | 1.08% | 99.97 | 7.10% |
| AMP Group | AMPPB | Capital Notes 2 | 16/12/2025 | 4.50% | 7.75% | 0.21% | 101 | 8.22% |
| Macquarie Bank | MBLPC | Capital Notes 2 | 22/12/2025 | 4.70% | 7.21% | 0.18% | 101.049 | 8.40% |
| Challenger | CGFPC | Capital Notes 3 | 25/05/2026 | 4.60% | 5.55% | 0.10% | 102.47 | 8.26% |
| Nat Aust Bank | NABPF | Capital Notes 3 | 17/06/2026 | 4.00% | 4.46% | 0.08% | 102.099 | 7.63% |
| Suncorp | SUNPH | Capital Notes 3 | 17/06/2026 | 3.00% | 4.48% | 0.08% | 100.88 | 6.69% |
| Macquarie Group | MQGPD | Capital Notes 4 | 10/09/2026 | 4.15% | 4.04% | 0.05% | 102.5 | 7.74% |
| CBA | CBAPJ | PERLS 13 | 20/10/2026 | 2.75% | 3.67% | 0.05% | 101.05 | 6.42% |
| Latitude | LFSPA | Capital Notes | 27/10/2026 | 4.75% | 11.57% | 0.11% | 96.5 | 9.03% |
| Westpac | WBCPJ | Capital Notes 7 | 22/03/2027 | 3.40% | 4.81% | 0.05% | 102.197 | 7.15% |
| CBA | CBAPI | PERLS 12 | 20/04/2027 | 3.00% | 3.23% | 0.04% | 101.91 | 6.62% |
| Bank of Queensland | BOQPF | Capital Notes 2 | 14/05/2027 | 3.80% | 4.34% | 0.05% | 102.58 | 7.46% |
| Bendigo Bank | BENPH | Capital Notes | 15/06/2027 | 3.80% | 3.85% | 0.04% | 102.5 | 7.40% |
| Macquarie Group | MQGPE | Capital Notes 5 | 20/09/2027 | 2.90% | 3.21% | 0.03% | 101.39 | 6.54% |
| Nat Aust Bank | NABPH | Capital Notes 5 | 17/12/2027 | 3.50% | 3.27% | 0.03% | 103 | 7.06% |
| ANZ Bank | AN3PI | Capital Notes 6 | 20/03/2028 | 3.00% | 2.85% | 0.02% | 102.16 | 6.57% |
| CBA | CBAPL | PERLS 15 | 15/06/2028 | 2.85% | 3.07% | 0.02% | 101.76 | 6.48% |
| Suncorp | SUNPI | Capital Notes 4 | 17/06/2028 | 2.90% | 3.42% | 0.02% | 101.05 | 6.58% |
| Westpac | WBCPL | Capital Notes 9 | 22/09/2028 | 3.40% | 3.70% | 0.03% | 103.68 | 7.04% |
| Macquarie Bank | MBLPD | Capital Notes 3 | 7/12/2028 | 2.90% | 2.91% | 0.02% | 102.2 | 6.49% |
| Bank of Queensland | BOQPG | Capital Notes 3 | 15/12/2028 | 3.40% | 3.39% | 0.02% | 102.601 | 6.98% |
| Judo Capital | JDOPA | Capital Notes | 16/02/2029 | 6.50% | 3.93% | 0.03% | 112 | 9.38% |
| ANZ Bank | AN3PJ | Capital Notes 7 | 20/03/2029 | 2.70% | 2.84% | 0.01% | 101.39 | 6.32% |
| Challenger | CGFPD | Capital Notes 4 | 25/05/2029 | 3.60% | 3.49% | 0.02% | 103.5 | 7.16% |
| CBA | CBAPK | PERLS 14 | 15/06/2029 | 2.75% | 2.93% | 0.02% | 101.77 | 6.38% |
| IAG | IAGPE | Capital Notes 2 | 15/06/2029 | 3.50% | 3.82% | 0.02% | 103 | 7.15% |
| Macquarie Group | MQGPF | Capital Notes 6 | 12/09/2029 | 3.70% | 2.85% | 0.02% | 105.3 | 7.08% |
| Nat Aust Bank | NABPI | Capital Notes 6 | 17/09/2029 | 3.15% | 2.77% | 0.02% | 103.77 | 6.65% |
| Westpac | WBCPK | Capital Notes 8 | 21/09/2029 | 2.90% | 3.28% | 0.02% | 103.04 | 6.57% |
| ANZ Bank | AN3PK | Capital Notes 8 | 20/03/2030 | 2.75% | 2.76% | 0.01% | 101.86 | 6.34% |
| CBA | CBAPM | PERLS 16 | 17/06/2030 | 3.00% | 2.55% | 0.01% | 104.19 | 6.47% |
| Suncorp | SUNPJ | Capital Notes 5 | 17/06/2030 | 2.80% | 2.97% | 0.02% | 101.76 | 6.43% |
| Nat Aust Bank | NABPJ | Capital Notes 7 | 17/09/2030 | 2.80% | 2.71% | 0.01% | 102.801 | 6.36% |
| Bendigo Bank | BENPi | Capital Notes 2 | 13/12/2030 | 3.20% | 3.16% | 0.02% | 102.85 | 6.77% |
| Insurance Australia | IAGPF | Capital Notes 3 | 15/12/2030 | 3.20% | 3.47% | 0.01% | 102.7 | 6.85% |
| ANZ Bank | AN3PL | Capital Notes 9 | 20/03/2031 | 2.90% | 2.73% | 0.01% | 102.69 | 6.44% |
| Westpac | WBCPM | Capital Notes 10 | 22/09/2031 | 3.10% | 3.16% | 0.01% | 104.21 | 6.69% |
| Macquarie Group | MQGPG | Capital Notes 7 | 15/12/2031 | 2.65% | 2.80% | 0.01% | 101.5 | 6.28% |
| Nat Aust Bank | NABPK | Capital Notes 8 | 17/03/2032 | 2.60% | 2.42% | 0.01% | 103.26 | 6.13% |
ASX-Listed Hybrids (Non-standard) Date - 30.06.25.
| COMPANY | CODE | BOND TYPE | CALL DATE | ISSUE MARGIN (inc frank) | TRADING MARGIN | ?DAY | CLOSING PRICE | RUNNING YIELD |
|---|---|---|---|---|---|---|---|---|
| Nufarm | NFNG | Step Up | Perpetual | 3.90% | 5.37% | 0.03% | 87.2 | 8.98% |
| Ramsay Health Care | RHCPA | Preference Share | Perpetual | 4.85% | 4.69% | 0.03% | 105.6 | 8.30% |