ASX-Listed Notes
Trading margins of ASX-listed notes and bonds were quite stable on average this week and the median trading margin increased from 1.50% (after removal of Caltex notes) to 1.56%. Excluding securities which are close to maturity, the largest moves came from Suncorp Notes (ASX code: SUNPD, +85bps) and AGL Notes (ASX AGLHA, +78bps). Crown Notes 1 (ASX code: CWNHA, -60bps) were the most keenly sought security in this sector.
While on the topic of Crown Notes, there is a sizeable difference in the trading margins of the two series. Some brokers have pointed to this difference and suggest holders switch from the series 1 notes to the series 2 notes (ASX code: CWNHB).
Caltex subordinated notes ceased trading on 5 September 2017 and they will be redeemed on 15 September for $100 plus accrued interest $1.5678.
Goodman Group PLUS (ASX code: GMPPA) will be repurchased on 2 October 2017. Registered holders on 25 September 2017 will receive $100 face value and $1.414027 interest per Goodman PLUS. The last day of trading on the ASX will be 21 September 2017.
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.
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% | 1.14% | 0.78% | 104.50 | 5.30% |
| AMP | AMPHA | Sub Note II | 18-Dec-18 | 2.65% | 0.98% | 0.25% | 102.00 | 4.30% |
| APT Pipelines | AQHHA | Sub Note | 31-Mar-18 | 4.50% | 0.88% | 0.03% | 103.23 | 6.11% |
| Australian Unity | AYUHB | Unsub. Bond | 15-Dec-20 | 2.80% | 1.54% | 0.12% | 104.52 | 4.37% |
| Crown | CWNHA | Sub Note | 14-Sep-18 | 5.00% | 2.73% | -0.60% | 102.20 | 6.59% |
| Crown | CWNHB | Sub Note | 23-Jul-21 | 4.00% | 4.71% | 0.17% | 97.95 | 5.85% |
| Goodman Group | GMPPA | Sub Note | 30-Sep-18 | 3.90% | 5.20% | 1.07% | 101.00 | 5.64% |
| Bentham IMF | IMFHA | Bond | 30-Jun-19 | 4.20% | 2.77% | -0.24% | 103.50 | 5.79% |
| Nat Aust Bank | NABPE | Sub Note T2 | 20-Jun-23 | 2.20% | 1.57% | -0.02% | 104.16 | 3.81% |
| Qube Holdings | QUBHA | Sub Note | 5-Oct-23 | 3.90% | 3.67% | 0.03% | 106.70 | 5.34% |
| Suncorp-Metway | SUNPD | Sub NoteI T2 | 21-Nov-18 | 2.85% | 1.32% | 0.85% | 102.05 | 4.51% |
| Tatts | TTSHA | Snr. Bond | 5-Jul-19 | 3.10% | 1.44% | 0.15% | 103.80 | 4.70% |
| Villa World | VLWHA | Snr. Bond | 21-Apr-22 | 4.75% | 4.53% | 0.09% | 102.00 | 6.42% |
| Westpac | WBCHB | Sub Note T2 | 22-Aug-18 | 2.30% | 1.25% | 0.00% | 101.20 | 4.00% |