14 Mar – 18 Mar 2016

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ASX-listed floating rate note and bond margins fell during the week to finish at 2.82%, which is 20bps less than the trading margin at the end of the previous week. A large chunk of the fall was down to a continuation of a fall in the trading margin on notes issued by Origin (ORGHA) and it is now back to 5.83% (last week 7.40%).

While Origin’s notes have been taken out of the “sin bin”, the trading margins of Crown’s two series remained stable at their elevated levels. It seems investors remaining convinced Crown’s notes are a big risk when it comes to being redeemed on the call dates in 2018 (CWNHA) and 2021 (CWNHB).

Below chart: Investors could be forgiven for not viewing the AYUHB and AMPPHAs very favourably.
Note the SUNPD have a Basel III non – viability trigger which forces conversion to shares

financial-18mar
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ASX LISTED FLOATING RATE NOTES

COMPANY
$100
Face Val
CODEBOND
TYPE
MATURITYISSUE
MARGIN
TRADING
MARGIN
Δ WEEKWEEK
CLOSE
YTM
Est**
AGLAGLHASub Note8/06/20193.80%3.41%0.05%101.305.74%
AMPAMPHASub Note II18/12/20182.65%2.16%-0.17%101.224.49%
ANZ Banking GroupANZHASub Note II14/06/20172.75%1.74%0.30%101.154.07%
APT PipelinesAQHHASub Note31/03/20184.50%3.68%-0.20%101.306.01%
Australian UnityAYUHABond14/04/20163.55%8.12%0.52%100.7310.45%
ColonialCNGHASub Note31/03/20173.25%1.94%-0.59%102.474.27%
CaltexCTXHASub Note15/09/20174.50%2.98%-0.18%102.205.31%
CrownCWNHASub Note14/09/20185.00%11.34%-0.27%86.9013.67%
CrownCWNHBSub Note23/07/20214.00%10.89%-0.06%74.4013.22%
Goodman GroupGMPPASub Note30/09/20183.90%4.73%0.00%99.407.06%
Bentham IMFIMFHABond30/06/20194.20%4.97%0.04%99.007.30%
Nat Aust BankNABHBSub Note18/06/20172.75%1.77%0.32%101.154.10%
OriginORGHASub Note22/12/20164.00%5.83%-1.44%98.608.16%
Suncorp MetwaySUNPDSub Note II21/11/20182.85%2.98%-0.04%99.995.31%
TabcorpTAHHBSub Bond22/03/20174.00%2.37%-0.07%101.504.70%
TattsTTSHASnr. Bond5/07/20193.10%1.81%-0.30%105.004.14%
WestpacWBCHASub Note23/08/20172.75%1.84%0.08%101.554.17%
WestpacWBCHBSub Note II22/08/20182.30%2.67%-0.12%99.455.00%
WoolworthsWOWHCSub Note24/11/20163.25%2.14%-0.19%101.054.47%

ASX LISTED CONVERTIBLE NOTES

COMPANYCODEFACE
VALUE
MATURITYWEEK
HIGH
WEEK
LOW
WEEK
CLOSE
YTMSIZE
($m)
Aust FoundationAFIG$100.0028/02/2017111.00110.12110.269.97%$3.13 on 19 Aug 2016 (E)
Peet GroupPPCG$100.0016/06/2016102.15101.00101.0014.71%$4.75 on 04 Jun 2016 (A)

ASX LISTED FIXED RATE BONDS

COMPANYCODETYPEMATURITYCOUPONWEEK
HIGH
WEEK
LOW
WEEK
CLOSE
YTMNEXT DIV
AND EX
DATE
Heritage BSHBSHBSnr Bond20/06/20177.25%103.80103.20103.204.39%$1.813 on 9 Jun 2016 (E)

** 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

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