News: NAB National Australia Bank Announces Capital Notes 3 Offer, page-15

Assuming the margin ends up at the lower end (as these things inevitably do) it's 30 bps higher than CBA's recent PERLS XI margin of 3.7%. Similar option and mandatory exchange conditions but 2 years longer for NAB, so these look quite reasonably valued. I'd be interested to see an updated yield vs time curve with these plotted on them. With the 90 day BBSW currently around 2% that's a yield of 6% fully franked. In the ballpark of Big Four ordinaries with much lower capital volatility.

I am thinking of selling my PERLS XI for these. I figure if we have a housing-induced financial crisis that results in a loss event for the Big Four hybrids then it's going to happen prior to 2026 so the extra two years isn't likely to matter. Only question is whether NAB is significantly weaker/more exposed so that they're more likely to have a loss event than CBA. It may be, but I suspect if it's bad enough that one of the big four triggers then all four are likely to go.