Daily

Summary-

The Australian bank hybrid market continues to show resilience, but recent trading margins and yields reveal notable movements across major issuers. Investors seeking income and diversification should pay attention to these trends:

1. Commonwealth Bank (CBA) PERLS Series

• CBAPJ (PERLS 13): Trading margin at 0.94%, closing at $101.56, with a running yield of 6.28%.
• CBAPL (PERLS 15): Margin climbed to 1.48%, price $103.18, yield 6.28%.
• Insight: Incremental margin increases across PERLS series suggest stronger investor demand for higher compensation amid rate uncertainty.

2. National Australia Bank (NAB) Capital Notes

• NABPH (Capital Notes 5): Margin at 1.42%, price $103.94, yield 6.86%.
• NABPK (Capital Notes 8): Margin eased to 1.64%, price $104.76, yield 5.95%.
• Trend: Longer-dated notes show slightly compressed yields, signaling confidence in NAB’s credit profile.

3. Westpac Hybrids

• WBCPJ (Capital Notes 7): Margin 1.18%, price $102.80, yield 6.84%.
• WBCPM (Capital Notes 10): Margin 1.76%, price $106.14, yield 6.34%.
• Observation: Higher margins on later series reflect duration risk pricing as investors weigh long-term rate outlook.

4. ANZ Capital Notes

• AN3PI (Capital Notes 6): Margin 1.36%, price $103.50, yield 6.41%.
• AN3PL (Capital Notes 9): Margin 1.80%, price $104.78, yield 6.24%.
• Takeaway: ANZ hybrids maintain competitive yields, appealing to income-focused portfolios.

5. Regional Banks

• Bank of Queensland (BOQPF): Margin 0.62%, price $104.19, yield 7.11%.
• Bendigo Bank (BENPH): Margin 1.07%, price $104.02, yield 7.14%.
• Insight: Regional bank hybrids offer attractive yields compared to majors, but liquidity considerations remain key.

 

• 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%	-0.45%	102.66	8.02%
  Nat Aust Bank	NABPF	Capital Notes 3	17/06/2026	4.00%	0.47%	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%	0.43%	102.95	7.56%
  CBA	CBAPJ	PERLS 13	20/10/2026	2.75%	0.94%	101.56	6.28%
  Latitude	LFSPA	Capital Notes	27/10/2026	4.75%	6.22%	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%	0.62%	104.19	7.11%
  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%	1.06%	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	6.16%
  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%	1.55%	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%	1.89%	103.51	6.21%
  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	6.45%
  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%	1.80%	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%	5.08%	88	8.72%
  Ramsay Health Care	RHCPA	Preference Share	Perpetual	4.85%	4.43%	106.75	8.07%