20 Feb – 24 Feb 2017

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ASX-listed notes

Trading margins for ASX-listed notes rose substantially this week, with the median trading margin moving from 1.52% to 1.73%. The rise was driven by Tatts Bonds (ASX code: TTSHA, +77bps) and AMP Notes (ASX code: AMPHA, +58bps). Quite often moves of this size are associated with securities which have maturity dates fast approaching but this is not the case with either of these securities. Crown has announced a buy-back for its series 1 notes (ASX code: CWNHA) to be held sometime in 2017 but as any other details are unavailable, the market for the notes did not react much.

In other news, Colonial Notes (ASX code: CNGHA) holders should have received a redemption notice by now, as well as an offer to invest the redemption proceeds into a new AT1 hybrid issued by Colonial’s parent, Commonwealth Bank. Colonial Notes are now on a -1.85% trading margin, which sounds awful but an internal rate of return calculation provides an annualised figure of 4.20%. Readers will note this 4.20% does not include any transaction costs which would almost-certainly make a short-term investment of this type uneconomic.

170224 notes

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%1.80%-0.14%105.503.58%
AMPAMPHASub Note II18-Dec-182.65%1.66%0.58%102.503.44%
ANZ Banking GroupANZHASub Note II14-Jun-172.75%1.03%0.26%101.302.81%
APT PipelinesAQHHASub Note31-Mar-184.50%1.93%-0.29%103.603.71%
Australian UnityAYUHBBond15-Dec-202.80%1.59%0.05%104.803.37%
ColonialCNGHASub Note31-Mar-173.25%-1.85%0.00%100.88-0.07%
CaltexCTXHASub Note15-Sep-174.50%0.76%-0.62%103.202.54%
CrownCWNHASub Note14-Sep-185.00%4.31%-0.13%102.356.09%
CrownCWNHBSub Note23-Jul-214.00%5.36%-0.43%96.257.14%
Goodman GroupGMPPASub Note30-Sep-183.90%3.15%0.09%101.994.93%
Bentham IMFIMFHABond30-Jun-194.20%3.63%0.05%102.005.41%
Nat Aust BankNABHBSub Note II18-Jun-172.75%0.65%-0.59%101.422.43%
QUBE Holdings LimitedQUBHASub Note5-Oct-233.90%3.03%0.02%105.504.81%
Suncorp MetwaySUNPDSub Note III21-Nov-182.85%1.49%0.01%102.273.27%
TabcorpTAHHBSub Bond22-Mar-174.00%2.86%0.00%101.094.64%
TattsTTSHASnr. Bond5-Jul-193.10%1.82%0.77%103.503.60%
WestpacWBCHASub Note II23-Aug-172.75%0.50%-0.69%101.042.28%
WestpacWBCHBSub Note III22-Aug-182.30%1.06%-0.45%101.772.84%

ASX LISTED FIXED RATE BONDS

COMPANYCODETYPEMATURITYCOUPONWEEK
HIGH
WEEK
LOW
WEEK
CLOSE
YTMNEXT DIV
AND EX
DATE
Heritage BSHBSHBSnr Bond20/06/20177.25%102.50102.24102.304.35%155.43%

** 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