11 November 2025

Summary-

Australian bank hybrids continued to attract strong investor interest today, with prices holding above par and running yields offering competitive income across the board. The standout performer was Judo Capital’s JDOPA, delivering a 9.60% running yield and a 4.60% trading margin, reflecting its higher risk premium and appeal for yield-focused investors.

Top 5 Bank Hybrids by Running Yield

1. Macquarie Group (MQGPD) — 7.56% yield, 0.45% margin, 102.95 close
2. National Australia Bank (NABPF) — 7.48% yield, 0.49% margin, 101.94 close
3. Westpac (WBCPJ) — 6.84% yield, 1.18% margin, 102.80 close
4. Commonwealth Bank (CBAPI) — 6.47% yield, 1.12% margin, 102.50 close
5. ANZ (AN3PI) — 6.41% yield, 1.36% margin, 103.50 close

These hybrids traded firmly above par, signaling strong demand and confidence in bank credit quality. Regional banks such as Bank of Queensland and Bendigo Bank remained competitive, posting yields near 7.1%, positioning them as a middle ground between the Big Four and smaller issuers.

Key Market Trends

• Running yields: Mostly 6.1%–7.6% for major banks; JDOPA stands out at 9.60%.
• Trading margins: Tight spreads on short-dated hybrids (~0.9%–1.3%), wider margins on longer-dated issues (~1.6%–2.0%).
• Prices: Predominantly above par (102–107), underscoring robust demand and confidence in bank credit quality.
• Call date impact: Near-term calls (2026–2028) generally carry lower margins, while longer-dated hybrids (2030–2032) show higher spreads.

For income investors, today’s data suggests opportunities in Macquarie and NAB hybrids for those seeking strong yields with relatively low margins, while JDOPA offers the highest return for those comfortable with elevated risk. Regional banks provide a balanced alternative for those looking beyond the Big Four.

 

• COMPANY	CODE	HYBRID TYPE	MATURITY/ CALL DATE	MARGIN INCL. CREDITS	TRADING MARGIN	DAY CLOSE	RUNNING YIELD**
  Challenger	CGFPC	Capital Notes 3	25/05/2026	4.60%	-0.41%	102.66	8.02%
  Nat Aust Bank	NABPF	Capital Notes 3	17/06/2026	4.00%	0.49%	101.94	7.48%
  Suncorp	SUNPH	Capital Notes 3	17/06/2026	3.00%	0.86%	101.13	6.56%
  Macquarie Group	MQGPD	Capital Notes 4	10/09/2026	4.15%	0.45%	102.95	7.56%
  CBA	CBAPJ	PERLS 13	20/10/2026	2.75%	0.94%	101.56	6.29%
  Latitude	LFSPA	Capital Notes	27/10/2026	4.75%	6.20%	98.50	8.49%
  Westpac	WBCPJ	Capital Notes 7	22/03/2027	3.40%	1.18%	102.80	6.84%
  CBA	CBAPI	PERLS 12	20/04/2027	3.00%	1.12%	102.50	6.47%
  Bank of Queensland	BOQPF	Capital Notes 2	14/05/2027	3.80%	0.91%	104.19	7.14%
  Bendigo Bank	BENPH	Capital Notes	15/06/2027	3.80%	1.07%	104.02	7.14%
  Macquarie Group	MQGPE	Capital Notes 5	20/09/2027	2.90%	1.04%	102.70	6.33%
  Nat Aust Bank	NABPH	Capital Notes 5	17/12/2027	3.50%	1.42%	103.94	6.86%
  ANZ Bank	AN3PI	Capital Notes 6	20/03/2028	3.00%	1.36%	103.50	6.41%
  CBA	CBAPL	PERLS 15	15/06/2028	2.85%	1.48%	103.18	6.28%
  Suncorp	SUNPI	Capital Notes 4	17/06/2028	2.90%	1.56%	103.10	6.34%
  Westpac	WBCPL	Capital Notes 9	22/09/2028	3.40%	1.30%	105.30	6.68%
  Macquarie Bank	MBLPD	Capital Notes 3	7/12/2028	2.90%	1.66%	103.40	6.32%
  Bank of Queensland	BOQPG	Capital Notes 3	15/12/2028	3.40%	1.84%	104.20	6.75%
  Judo Capital	JDOPA	Capital Notes	16/02/2029	6.50%	4.60%	111.71	9.60%
  ANZ Bank	AN3PJ	Capital Notes 7	20/03/2029	2.70%	1.73%	102.85	6.16%
  Challenger	CGFPD	Capital Notes 4	25/05/2029	3.60%	1.48%	106.50	6.80%
  CBA	CBAPK	PERLS 14	15/06/2029	2.75%	1.61%	103.54	6.17%
  IAG	IAGPE	Capital Notes 2	15/06/2029	3.50%	1.92%	104.90	6.80%
  Macquarie Group	MQGPF	Capital Notes 6	12/09/2029	3.70%	1.54%	107.00	6.85%
  Nat Aust Bank	NABPI	Capital Notes 6	17/09/2029	3.15%	1.51%	105.34	6.44%
  Westpac	WBCPK	Capital Notes 8	21/09/2029	2.90%	1.46%	104.74	6.24%
  ANZ Bank	AN3PK	Capital Notes 8	20/03/2030	2.75%	1.66%	104.00	6.14%
  CBA	CBAPM	PERLS 16	17/06/2030	3.00%	1.44%	105.92	6.26%
  Suncorp	SUNPJ	Capital Notes 5	17/06/2030	2.80%	1.88%	103.51	6.22%
  Nat Aust Bank	NABPJ	Capital Notes 7	17/09/2030	2.80%	1.68%	104.46	6.16%
  Bendigo Bank	BENPi	Capital Notes 2	13/12/2030	3.20%	1.77%	105.85	6.46%
  Insurance Australia	IAGPF	Capital Notes 3	15/12/2030	3.20%	1.96%	105.14	6.50%
  ANZ Bank	AN3PL	Capital Notes 9	20/03/2031	2.90%	1.79%	104.78	6.24%
  Westpac	WBCPM	Capital Notes 10	22/09/2031	3.10%	1.76%	106.14	6.34%
  Macquarie Group	MQGPG	Capital Notes 7	15/12/2031	2.65%	2.01%	103.15	6.09%
  Nat Aust Bank	NABPK	Capital Notes 8	17/03/2032	2.60%	1.64%	104.76	5.95%

• COMPANY	CODE	BOND TYPE	CALL DATE	ISSUE MARGIN (inc frank)	TRADING MARGIN	CLOSING PRICE	RUNNING YIELD
  Nufarm	NFNG	Step Up	Perpetual	3.90%	5.06%	88	8.71%
  Ramsay Health Care	RHCPA	Preference Share	Perpetual	4.85%	4.42%	106.75	8.06%