Summary: Trading margins rise on average; rises outweigh falls by 4:3; sector trading margin still below lower bound of “normal” trading range; margins of CBAPD, SUNPG, AMPPB largest movers over week; WBCPK begins trading.
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The median trading margin of ASX-listed hybrids decreased as the number of securities with lower spreads to BBSW outweighed securities with higher spreads by a ratio of 3:1. By the end of the week, the median trading margin had
The median trading margin of ASX-listed hybrids reversed course and rose as the number of securities with higher spreads to BBSW outweighed securities with lower spreads by a ratio of 4:3. By the end of the week, the median trading margin had increased from 2.40% (adjusted for WBCPK inclusion) to 2.47%, a reading which is still below the lower bound of its “normal” ten-year trading range.
Trading margins of most hybrids varied within a range of -14bps to +15bps. Ignoring short-dated securities, the margins of Commonwealth Bank PERLS 7 (code: CBAPD, 40bps), Suncorp Capital Notes 2 (code: SUNPG, +27bps) and AMP Capital Notes 2 (code: AMPPB, -26bps) had the largest (absolute) changes over the week.
Westpac Bank Capital Notes 8 (code: WBCPK) began trading on Thursday and finished the day at a 0.9% premium to its $100 face value.
The current 3-month BBSW rate is just one basis point 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 | CBAPE | PERLS 8 | 15-Oct-21 | 5.20% | 6.04% | 1.31% | 99.97 | 5.22% |
| Westpac | WBCPG | Capital Notes 4 | 20-Dec-21 | 4.90% | 2.50% | 1.23% | 100.80 | 4.88% |
| AMP Group | AMPPA | Capital Notes | 22-Dec-21 | 5.10% | 1.84% | -2.83% | 100.81 | 5.07% |
| CBA | CBAPF | PERLS 9 | 20-Feb-22 | 3.90% | 1.91% | 0.42% | 101.10 | 3.87% |
| ANZ Banking Group | ANZPE | Capital Notes 2 | 24-Mar-22 | 3.25% | 1.58% | 0.18% | 100.80 | 3.25% |
| Suncorp | SUNPF | Capital Notes | 17-Jun-22 | 4.10% | 1.98% | 0.45% | 101.60 | 4.05% |
| Nat. Aust. Bank | NABPD | Capital Notes 2 | 7-Jul-22 | 4.95% | 1.70% | 0.06% | 103.61 | 4.84% |
| Westpac | WBCPE | Capital Notes 2 | 23-Sep-22 | 3.05% | 1.45% | -0.21% | 101.57 | 3.01% |
| CBA | CBAPD | PERLS 7 | 15-Dec-22 | 2.80% | 2.21% | 0.40% | 100.75 | 2.79% |
| ANZ | ANZPF | Capital Notes 3 | 24-Mar-23 | 3.60% | 1.73% | 0.25% | 102.70 | 3.53% |
| Challenger | CGFPB | Capital Notes 2 | 22-May-23 | 4.40% | 3.05% | 0.04% | 102.52 | 4.32% |
| Insurance Australia | IAGPD | Capital Notes | 15-Jun-23 | 4.70% | 1.98% | -0.04% | 104.66 | 4.50% |
| ANZ | ANZPG | Capital Notes 4 | 20-Mar-24 | 4.70% | 2.01% | 0.02% | 106.40 | 4.43% |
| CBA | CBAPH | PERLS 11 | 26-Apr-24 | 3.70% | 1.91% | -0.06% | 104.48 | 3.55% |
| Bendigo Bank | BENPG | CPS 4 | 13-Jun-24 | 3.75% | 2.21% | -0.17% | 104.05 | 3.62% |
| Suncorp | SUNPG | Capital Notes 2 | 17-Jun-24 | 3.65% | 2.46% | 0.27% | 103.12 | 3.55% |
| Westpac | WBCPI | Capital Notes 6 | 30-Jul-24 | 3.70% | 1.89% | -0.11% | 104.90 | 3.54% |
| Bank of Qld | BOQPE | Capital Notes | 15-Aug-24 | 3.75% | 2.51% | 0.03% | 103.75 | 3.64% |
| Macquarie Group | MQGPC | Capital Notes 3 | 16-Dec-24 | 4.00% | 2.58% | 0.14% | 104.32 | 3.85% |
| ANZ | ANZPH | Capital Notes 5 | 20-Mar-25 | 3.80% | 2.06% | -0.08% | 105.65 | 3.61% |
| CBA | CBAPG | PERLS 10 | 15-Apr-25 | 3.40% | 2.21% | -0.01% | 104.02 | 3.28% |
| Westpac | WBCPH | Capital Notes 5 | 22-Sep-25 | 3.20% | 2.21% | -0.03% | 103.66 | 3.10% |
| AMP Group | AMPPB | Capital Notes 2 | 16-Dec-25 | 4.50% | 5.30% | -0.26% | 97.40 | 4.63% |
| Macquarie Bank | MBLPC | Capital Notes 2 | 22-Dec-25 | 4.70% | 2.57% | 0.05% | 108.10 | 4.36% |
| Challenger | CGFPC | Capital Notes 3 | 25-May-26 | 4.60% | 3.46% | -0.18% | 105.00 | 4.41% |
| Nat. Aust. Bank | NABPF | Capital Notes 3 | 17-Jun-26 | 4.00% | 2.28% | -0.10% | 107.35 | 3.74% |
| Suncorp | SUNPH | Capital Notes 3 | 17-Jun-26 | 3.00% | 2.71% | 0.11% | 101.29 | 2.97% |
| Macquarie Group | MQGPD | Capital Notes 4 | 10-Sep-26 | 4.15% | 2.82% | 0.08% | 105.93 | 3.93% |
| CBA | CBAPJ | PERLS 13 | 20-Oct-26 | 2.75% | 2.49% | 0.12% | 101.28 | 2.73% |
| Westpac | WBCPJ | Capital Notes 7 | 22-Mar-27 | 3.40% | 2.48% | 0.06% | 104.47 | 3.27% |
| CBA | CBAPI | PERLS 12 | 20-Apr-27 | 3.00% | 2.46% | 0.00% | 102.73 | 2.93% |
| Bank of Qld | BOQPF | Capital Notes 2 | 14-May-27 | 3.80% | 2.98% | -0.11% | 104.43 | 3.66% |
| Bendigo Bank | BENPH | Capital Notes | 15-Jun-27 | 3.80% | 2.87% | 0.01% | 104.71 | 3.64% |
| Macquarie Group | MQGPE | Capital Notes 5 | 20-Sep-27 | 2.90% | 2.79% | -0.06% | 100.67 | 2.89% |
| Nat. Aust. Bank | NABPH | Capital Notes 5 | 17-Dec-27 | 3.50% | 2.59% | -0.02% | 104.95 | 3.35% |
| ANZ | ANZPI | Capital Notes 6 | 20-Mar-28 | 3.00% | 2.64% | 0.08% | 102.09 | 2.95% |
| Macquarie Bank | MBLPD | Capital Notes 3 | 7-Dec-28 | 2.90% | 2.95% | 0.00% | 99.99 | 2.92% |
| Westpac | WBCPK | Capital Notes 8 | 21-Sep-29 | 2.90% | 2.78% | -0.12% | 100.90 | 2.89% |
ASX-LISTED HYBRIDS (NON-STANDARD)
| COMPANY | CODE | HYBRID TYPE | MATURITY/ CALL DATE | MARGIN INCL. CREDITS | TRADING MARGIN | WEEK CHANGE | WEEK CLOSE | RUNNING YIELD** |
|---|---|---|---|---|---|---|---|---|
| Bendigo Bank | BENHB | Perpetual | 21-Oct-54 | 1.00% | 1.01% | 0.00% | 99.45 | 1.02% |
| Challenger | CGFPA | Capital Notes | 25-May-22 | 3.40% | 3.42% | 0.00% | 100.50 | 3.40% |
| Crown | CWNHB | Sub Notes 2 | 23-Apr-75 | 4.00% | 4.99% | -0.03% | 86.00 | 4.67% |
| Nufarm | NFNG | Step Up | Perpetual | 3.90% | 4.62% | -0.02% | 86.51 | 4.64% |
| Ramsay Health Care | RHCPA | Perpetual PS | Perpetual | 4.85% | 4.73% | 0.01% | 105.00 | 4.74% |
| Suncorp-Metway | SBKHB | Income Securities | Perpetual | 0.75% | 0.75% | 0.00% | 99.73 | 0.77% |
** “Clean” running yield. Includes franking credits if present.