In a first for the retail hybrid note market, Macquarie Group priced a capital note issue by Macquarie Bank at the wide end of the indicated range on Friday. The price was set at 330 basis points over the 180-day bank bill rate, against an indicated range of 310 bps to 330 bps. The issue size was also only marginally increased to A$420 million in the bookbuild, from $400 million at launch.The Macquarie Bank Capital Notes (BCNs) issue takes total hybrid issuance to more than A$3.6 billion in just one month.Commonwealth Bank led the current spate of issuance with its PERLS VII notes. Challenger Limited followed, along with Bendigo and Adelaide Bank.Perhaps investor appetite is finally waning for hybrid notes. However, with the issue being upsized, even if only marginally, this may not be the explanation for the pricing.It is worth noting that Bendigo and Adelaide Bank, which is rated by Standard & Poor's a notch lower than Macquarie Bank at A-, achieved tighter pricing on its hybrid note issue, at 320 bps, just the week before.The likely explanation for the wider pricing on the BCNs is the structural complexity of the issue. The Macquarie Bank capital notes are referred to as BCNs, to distinguish them from the Macquarie Group capital notes (MCNs) issued in June 2013.BCN holders will be creditors of Macquarie Bank, the main operating subsidiary in Macquarie Group, and therefore have a direct claim against the assets of the bank. MCN holders are creditors of the holding company and therefore structurally subordinated to creditors of the bank, as they can only claim against the assets of the bank as shareholders (and only after all other claims have been met).However, with only the BCN holders being subject to a capital event conversion trigger, their notes could be converted to Macquarie Group equity, while MCN holders remain unconverted. MCN holders will only be converted upon the declaration of non-viability. In the meantime MCN holders will hold a senior ranking position in the capital structure of Macquarie Group to the former BCN holders.