23 May – 27 May 2016

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Trading margins pushed up a little this week, although many of the rises were modest. The median trading margin for ASX-listed floating rate notes and bonds rose from 2.22% to 2.42%, and the rise was inflated by movements in Crown’s two notes (ASX codes: CWNHA, CWNHB),  APT Pipelines notes (ASX code: AQHHA) and Caltex notes (ASX code: CTXHA).

Evans and Partners’ Michael Saba made an interesting observation regarding Crown’s two series of ASX-listed notes relative to Crown’s unlisted OTC (“over the counter”) 2019 bonds. The margin on the OTC bonds has come back to its pre-takeover concern levels while the margins on the two series of notes remains elevated. Something seems awry.

crown-sub-notes-report
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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%3.16%0.13%103.005.13%
AMPAMPHASub Note II18/12/20182.65%2.33%0.12%101.604.30%
ANZ Banking GroupANZHASub Note II14/06/20172.75%1.25%-0.06%102.363.22%
APT PipelinesAQHHASub Note31/03/20184.50%3.41%0.81%102.865.38%
Australian UnityAYUHBBond15/12/20202.80%2.20%0.15%103.024.17%
ColonialCNGHASub Note31/03/20173.25%1.80%0.14%101.953.77%
CaltexCTXHASub Note15/09/20174.50%2.51%0.49%103.754.48%
CrownCWNHASub Note14/09/20185.00%9.88%0.32%91.7011.85%
CrownCWNHBSub Note23/07/20214.00%10.26%0.62%77.9512.23%
Goodman GroupGMPPASub Note30/09/20183.90%4.31%0.51%100.006.28%
Bentham IMFIMFHABond30/06/20194.20%5.30%0.14%97.757.27%
Nat Aust BankNABHBSub Note II18/06/20172.75%1.49%-0.08%102.153.46%
OriginORGHASub Note22/12/20164.00%6.68%-0.23%99.598.65%
Suncorp MetwaySUNPDSub Note III21/11/20182.85%2.42%0.04%101.004.39%
TabcorpTAHHBSub Bond22/03/20174.00%3.04%0.24%101.805.01%
TattsTTSHASnr. Bond5/07/20193.10%1.54%-0.48%105.253.51%
WestpacWBCHASub Note II23/08/20172.75%1.54%-0.11%101.453.51%
WestpacWBCHBSub Note III22/08/20182.30%2.15%0.06%100.304.12%
WoolworthsWOWHCSub Note24/11/20163.25%2.20%-0.02%100.504.17%

ASX LISTED CONVERTIBLE NOTES

COMPANYCODEFACE
VALUE
MATURITYWEEK
HIGH
WEEK
LOW
WEEK
CLOSE
YTMSIZE
($m)
Aust FoundationAFIG$100.0028/02/2017111.00110.00110.4511.52%$3.13 on 19 Aug 2016 (E)
Peet GroupPPCG$100.0016/06/2016103.1730.77%$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%105.25104.51104.554.07%$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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