The future of bank hybrids

Australia's hybrid model is different to the rest of the world - and that's a good thing for income.

Summary: Changes to the regulatory environment for banks has caused significant growth in the bank hybrid market. This growth has largely been taken up by retail investors. Recent news from international markets suggests that distributions on these securities are at risk but our analysis suggests otherwise, as Australian banks are posting high profits and are incentivised to keep paying distributions on hybrids.

Key take out: Bank hybrids are complex and are not a like for like replacement for term deposits. However, interest payments on these securities are as secure as equity dividends but with far less volatility in the price.



{{ twilioFailed ? 'SMS Code Failed to Send…' : 'An SMS verification code has been sent ...' }}

Hi {{ user.FirstName }}

Looks like you have already taken a free trial

Please enter your payment details

We have sent you a code via SMS to {{user.DayPhone}}

please enter this code below to complete your SMS verification

We cannot send you a code via SMS to {{user.DayPhone}}

If you didn't receive SMS code please

SMS code cannot be sent due to: {{ twilioStatus }}

Please select one of the options below:

Looks you are already a member. Please enter your password to proceed

Please untick this box when using a public or shared device

Verify your mobile number to proceed...

Please check your mobile number below and press the Send Verification Code button. This will be used to complete your verification in the next step.

Please sign up for full access


Updating information

Please wait ...


{{ productPrice }} / day
( GST included )
Price $0
GST $0
Discount -{{productDiscount}}
TOTAL {{productPrice}}
  • Mastercard
  • Visa

Please click on the ACTIVATE button to finalise your membership


The email address you entered is registered with InvestSMART.

Please login or select "Don't know password"

Please untick this box when using a public or shared device

Register as a new member

(using a different email)

Related Articles