Trading margins of ASX-listed notes and bonds fell back this week and the median trading margin dropped from 1.87% to 1.79%. Even including securities which are close to maturity, the change in the trading margin of Tatts Bonds (ASX code: TTSHA, -109bps) was clearly the largest in magnitude. Tatts got a mention last week for a 43bps increase but this week’s movement put that to shame. 43 bps seems to be a popular amount and, by coincidence, the trading margin of AGL Notes (ASX code: AGLHA) margin rose by that amount.
The current 3 month BBSW rate is around 1.71%. Add the trading margin from the above chart or from the tables to 1.71% for a gross return per annum in the absence of BBSW rate changes. The gross return may contain imputation credits. BBSW typically is a bit more than the RBA rate.
The spread between the margins of Crown’s two notes widened back to 151bps.
Goodman Group PLUS (ASX code: GMPPA) were repurchased on 2 October 2017.
ASX LISTED FLOATING RATE NOTES
| COMPANY $100 Face Val | CODE | BOND TYPE | MATURITY | ISSUE MARGIN | TRADING MARGIN | Δ WEEK | WEEK CLOSE | RUNNING YIELD** |
|---|---|---|---|---|---|---|---|---|
| AGL | AGLHA | Sub Note | 8-Jun-19 | 3.80% | 1.79% | 0.43% | 103.70 | 5.33% |
| AMP | AMPHA | Sub Note II | 18-Dec-18 | 2.65% | 1.32% | 0.01% | 101.80 | 4.29% |
| APT Pipelines | AQHHA | Sub Note | 31-Mar-18 | 4.50% | 1.91% | 0.03% | 101.35 | 6.13% |
| Australian Unity | AYUHB | Unsub. Bond | 15-Dec-20 | 2.80% | 1.07% | -0.37% | 105.00 | 4.29% |
| Crown | CWNHA | Sub Note | 14-Sep-18 | 5.00% | 2.68% | -0.55% | 102.60 | 6.56% |
| Crown | CWNHB | Sub Note | 23-Jul-21 | 4.00% | 4.19% | -0.24% | 100.00 | 5.72% |
| Bentham IMF | IMFHA | Bond | 30-Jun-19 | 4.20% | 2.15% | 0.08% | 103.40 | 5.71% |
| Nat Aust Bank | NABPE | Sub Note T2 | 20-Jun-23 | 2.20% | 1.43% | -0.17% | 104.20 | 3.75% |
| Qube Holdings | QUBHA | Sub Note | 5-Oct-23 | 3.90% | 3.58% | -0.01% | 107.47 | 5.22% |
| Suncorp-Metway | SUNPD | Sub NoteI T2 | 21-Nov-18 | 2.85% | 1.58% | 0.15% | 102.00 | 4.49% |
| Tatts | TTSHA | Snr. Bond | 5-Jul-19 | 3.10% | 0.81% | -1.09% | 103.90 | 4.63% |
| Villa World | VLWHA | Snr. Bond | 21-Apr-22 | 4.75% | 4.31% | 0.02% | 103.25 | 6.33% |
| Westpac | WBCHB | Sub Note T2 | 22-Aug-18 | 2.30% | 0.93% | 0.00% | 101.70 | 3.96% |