Summary: Trading margins move higher on average; falls outweigh rises by nearly 4:3; sector trading margin still below lower bound of “normal” trading range; margins of ANZPF, BENPG, SUNPG largest movers over week; new hybrid announced by Latitude; MBLPD begins trading, ANZPD ceases.
Click here for the latest daily trading margins, running yields and charts.
The median trading margin of ASX-listed hybrids increased even as the number of securities with lower spreads to BBSW outweighed securities with higher spreads by a ratio of 4:3. By the end of the week, the median trading margin had increased from 2.52% (after MBLPD addition) to 2.56%, 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 -25bps to +30bps. Ignoring short-dated securities, the margins of ANZ Capital Notes 3 (code: ANZPF, -36bps), Bendigo CPS 4 (code: BENPG, +41bps) and Suncorp Capital Notes 2 (code: SUNPG, +31bps) had the largest (absolute) changes over the week.
Latitude Financial announced it would be issuing a new hybrid on Thursday. The new securities will have a likely issue margin of 4.75% and an October 2026 exchange date.
Macquarie Bank Capital Notes 3 (code: MBLPD) begin trading on Monday while ANZ redeemed its Capital Notes (code: ANZPD) for $100 on Wednesday.
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% | 3.56% | 1.19% | 101.35 | 5.20% |
| Westpac | WBCPG | Capital Notes 4 | 20-Dec-21 | 4.90% | 2.52% | -0.79% | 101.60 | 4.88% |
| AMP Group | AMPPA | Capital Notes | 22-Dec-21 | 5.10% | 4.85% | 1.66% | 101.12 | 5.11% |
| CBA | CBAPF | PERLS 9 | 20-Feb-22 | 3.90% | 1.82% | 0.61% | 102.07 | 3.87% |
| ANZ Banking Group | ANZPE | Capital Notes 2 | 24-Mar-22 | 3.25% | 1.59% | -0.12% | 102.40 | 3.25% |
| Suncorp | SUNPF | Capital Notes | 17-Jun-22 | 4.10% | 3.21% | 1.14% | 101.60 | 4.08% |
| Nat. Aust. Bank | NABPD | Capital Notes 2 | 7-Jul-22 | 4.95% | 1.63% | -0.11% | 103.60 | 4.83% |
| Westpac | WBCPE | Capital Notes 2 | 23-Sep-22 | 3.05% | 1.78% | -0.01% | 101.95 | 3.02% |
| CBA | CBAPD | PERLS 7 | 15-Dec-22 | 2.80% | 1.85% | -0.03% | 101.83 | 2.78% |
| ANZ | ANZPF | Capital Notes 3 | 24-Mar-23 | 3.60% | 1.61% | -0.36% | 104.66 | 3.52% |
| Challenger | CGFPB | Capital Notes 2 | 22-May-23 | 4.40% | 3.46% | -0.18% | 102.81 | 4.34% |
| Insurance Australia | IAGPD | Capital Notes | 15-Jun-23 | 4.70% | 1.97% | -0.47% | 105.78 | 4.50% |
| ANZ | ANZPG | Capital Notes 4 | 20-Mar-24 | 4.70% | 2.04% | 0.00% | 107.40 | 4.43% |
| CBA | CBAPH | PERLS 11 | 26-Apr-24 | 3.70% | 1.98% | -0.05% | 105.18 | 3.56% |
| Bendigo Bank | BENPG | CPS 4 | 13-Jun-24 | 3.75% | 2.75% | 0.41% | 103.50 | 3.67% |
| Suncorp | SUNPG | Capital Notes 2 | 17-Jun-24 | 3.65% | 2.86% | 0.31% | 102.90 | 3.59% |
| Westpac | WBCPI | Capital Notes 6 | 30-Jul-24 | 3.70% | 1.86% | -0.27% | 105.87 | 3.53% |
| Bank of Qld | BOQPE | Capital Notes | 15-Aug-24 | 3.75% | 2.48% | -0.09% | 103.74 | 3.63% |
| Macquarie Group | MQGPC | Capital Notes 3 | 16-Dec-24 | 4.00% | 2.56% | -0.10% | 105.18 | 3.84% |
| ANZ | ANZPH | Capital Notes 5 | 20-Mar-25 | 3.80% | 2.10% | -0.12% | 106.37 | 3.61% |
| CBA | CBAPG | PERLS 10 | 15-Apr-25 | 3.40% | 2.22% | 0.00% | 104.75 | 3.28% |
| Westpac | WBCPH | Capital Notes 5 | 22-Sep-25 | 3.20% | 2.31% | -0.07% | 104.00 | 3.11% |
| AMP Group | AMPPB | Capital Notes 2 | 16-Dec-25 | 4.50% | 5.22% | -0.06% | 98.61 | 4.62% |
| Macquarie Bank | MBLPC | Capital Notes 2 | 22-Dec-25 | 4.70% | 2.68% | 0.04% | 108.60 | 4.37% |
| Challenger | CGFPC | Capital Notes 3 | 25-May-26 | 4.60% | 3.94% | -0.03% | 104.04 | 4.49% |
| Nat. Aust. Bank | NABPF | Capital Notes 3 | 17-Jun-26 | 4.00% | 2.46% | 0.02% | 107.46 | 3.76% |
| Suncorp | SUNPH | Capital Notes 3 | 17-Jun-26 | 3.00% | 2.89% | 0.06% | 101.20 | 3.00% |
| Macquarie Group | MQGPD | Capital Notes 4 | 10-Sep-26 | 4.15% | 2.97% | 0.19% | 106.07 | 3.96% |
| CBA | CBAPJ | PERLS 13 | 20-Oct-26 | 2.75% | 2.53% | -0.01% | 101.60 | 2.73% |
| Westpac | WBCPJ | Capital Notes 7 | 22-Mar-27 | 3.40% | 2.59% | 0.07% | 104.72 | 3.28% |
| CBA | CBAPI | PERLS 12 | 20-Apr-27 | 3.00% | 2.51% | 0.01% | 103.17 | 2.94% |
| Bank of Qld | BOQPF | Capital Notes 2 | 14-May-27 | 3.80% | 3.01% | 0.00% | 104.16 | 3.67% |
| Bendigo Bank | BENPH | Capital Notes | 15-Jun-27 | 3.80% | 2.98% | -0.05% | 105.00 | 3.66% |
| Macquarie Group | MQGPE | Capital Notes 5 | 20-Sep-27 | 2.90% | 2.99% | 0.15% | 100.16 | 2.92% |
| Nat. Aust. Bank | NABPH | Capital Notes 5 | 17-Dec-27 | 3.50% | 2.66% | -0.03% | 105.37 | 3.36% |
| ANZ | ANZPI | Capital Notes 6 | 20-Mar-28 | 3.00% | 2.65% | -0.03% | 102.09 | 2.95% |
| Macquarie Bank | MBLPD | Capital Notes 3 | 7-Dec-28 | 2.90% | 2.92% | 0.02% | 100.06 | 2.91% |
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% | 3.45% | 0.01% | 100.40 | 3.43% |
| Crown | CWNHB | Sub Notes 2 | 23-Apr-75 | 4.00% | 4.94% | 0.01% | 87.50 | 4.63% |
| Nufarm | NFNG | Step Up | Perpetual | 3.90% | 4.58% | 0.02% | 87.20 | 4.59% |
| Ramsay Health Care | RHCPA | Perpetual PS | Perpetual | 4.85% | 4.73% | -0.01% | 104.67 | 4.75% |
| Suncorp-Metway | SBKHB | Income Securities | Perpetual | 0.75% | 0.75% | 0.00% | 99.73 | 0.77% |
** “Clean” running yield. Includes franking credits if present.