15 Aug – 19 Aug 2016

Share

ASX-listed floating rate notes and bonds

Yields have been falling around the globe and in most categories of fixed interest. The same was true in the ASX-listed notes sector as the median trading margin for ASX-listed floating rate notes fell 14bps from 1.98% to 1.84%. Falls were typically led by notes which mature within twelve months but Tatts bonds (ASX code: TTSHA) also found favour with investors and its trading margin fell 56bps. While there were some notes such where trading margins rose substantially, they were ones which mature in March 2017 (Colonial Notes and Tabcorp Notes).

Origin confirmed its “intention to redeem the A$900 million Subordinated Notes by the first call date in December 2016.” Beware the seemingly high trading margin of Origin Notes in the chart below; transaction costs and bid/offer spreads can chew that up very quickly.

Hybrid 160822 non financials

 

ASX LISTED FLOATING RATE NOTES

COMPANY
$100
Face Val
CODEBOND
TYPE
MATURITYISSUE
MARGIN
TRADING
MARGIN
Δ WEEKWEEK
CLOSE
YTM
Est**
AGLAGLHASub Note8-Jun-193.80%2.34%-0.07%104.894.08%
AMPAMPHASub Note II18-Dec-182.65%1.64%0.07%102.933.38%
ANZ Banking GroupANZHASub Note II14-Jun-172.75%1.13%-0.06%102.002.87%
APT PipelinesAQHHASub Note31-Mar-184.50%2.60%0.22%103.764.34%
Australian UnityAYUHBBond15-Dec-202.80%1.84%-0.05%104.293.58%
ColonialCNGHASub Note31-Mar-173.25%1.64%0.60%101.603.38%
CaltexCTXHASub Note15-Sep-174.50%1.32%-0.66%104.403.06%
CrownCWNHASub Note14-Sep-185.00%5.72%-0.03%99.857.46%
CrownCWNHBSub Note23-Jul-214.00%6.90%-0.29%89.758.64%
Goodman GroupGMPPASub Note30-Sep-183.90%3.52%0.01%101.505.26%
Bentham IMFIMFHABond30-Jun-194.20%4.49%-0.44%99.906.23%
Nat Aust BankNABHBSub Note II18-Jun-172.75%1.26%0.10%101.903.00%
OriginORGHASub Note22-Dec-164.00%3.72%0.07%100.985.46%
Suncorp MetwaySUNPDSub Note III21-Nov-182.85%2.00%-0.16%101.743.74%
TabcorpTAHHBSub Bond22-Mar-174.00%2.56%0.41%101.714.30%
TattsTTSHASnr. Bond5-Jul-193.10%1.33%-0.56%105.403.07%
WestpacWBCHASub Note II23-Aug-172.75%1.18%-0.13%101.452.92%
WestpacWBCHBSub Note III22-Aug-182.30%1.38%-0.39%101.693.12%
WoolworthsWOWHCSub Note24-Nov-163.25%-1.16%-0.86%101.000.58%

ASX LISTED FIXED RATE BONDS

COMPANYCODETYPEMATURITYCOUPONWEEK
HIGH
WEEK
LOW
WEEK
CLOSE
YTMNEXT DIV
AND EX
DATE
Heritage BSHBSHBSnr Bond20/06/20177.25%104.85104.20104.852.72%

ASX LISTED CONVERTIBLE NOTES

COMPANYCODEFACE
VALUE
MATURITYWEEK
HIGH
WEEK
LOW
WEEK
CLOSE
YTMSIZE
($m)
Aust FoundationAFIG$100.0028-Feb-17114.74114.00114.0010.69%

** YTM for floating rate securities is an estimate using current interest rates. This will vary if rates change.
Source: Evans & Partners. Dealing Contact Michael Saba +61 3 9631 9813