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Video: What replaces bank hybrids?

Recorded on 22 August 2025
 

In this interview, Blair Hannon, Head of ETFs, ANZ at Macquarie Asset Management and host Anna Dadic at Livewire Markets unpack bank hybrids, why they mattered, and where investors might turn next as APRA phase out hybrids by 2032. They discuss how subordinated debt could be the most natural replacement which is what APRA is mandating banks to use in place of hybrids.

Risks

All investments carry risk. Different investments carry different levels of risk, depending on the investment strategy and the underlying investments. Generally, the higher the potential return of an investment, the greater the risk (including the potential for loss and unit price variability over the short term). The risks of investing in this Fund include:

Investment risk: The Fund seeks to generate higher income returns than traditional cash investments. The risk of an investment in the Fund is higher than an investment in a typical bank account or term deposit. Amounts distributed to unitholders may fluctuate, as may the Fund’s NAV unit price, by material amounts over short periods.

Manager risk: There is no guarantee that the Fund will achieve its performance objectives, produce returns that are positive, or compare favourably against its peers, or that the strategies or models used by the Investment Manager will produce favourable outcomes.

Income securities risk: The Fund may have exposure to a range of income securities. The value of these securities may fall, for example due to market volatility, interest rate movements, perceptions of credit quality, supply and demand pressures, a change to the reference rate used to set the value of interest payments, market sentiment, or issuer default.

More information on the risks of investing in the Fund is contained in the Product Disclosure Statement for the Fund, which should be considered before deciding to invest in the Fund.

Important information

The Target Market Determination (TMD), available at macquarie.com/mam/tmd, includes a description of the class of consumers for whom the Fund is likely to be consistent with their objectives, financial situation and needs.