Summary: Trading margins mostly increase again; margin of PPCHB largest mover over week, C2FHA, AYUHC, NABPE also feature.
Trading margins of ASX-listed notes and bonds mostly increased again this week. Ignoring short-dated securities, the margin of Peet Bonds (code: PPCHB, +246bps) had the largest (absolute) change over the week, reversing a 248bps drop in the previous week. Note the bid/offer spread. Margins of Centuria Notes (code: C2FHA, +35bps), Australian Unity Series C Bonds (code: AYUHC, +35bps) and NAB Subordinated Notes (code: NABPE, +33bps) also had significant rises.
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The current 3-month BBSW rate is just 3bps above zero. Add the trading margin from the above chart or from the tables to this figure for an estimate of the gross return per annum in the absence of BBSW rate changes. The gross return may contain imputation credits. BBSW typically is around 15bps (average since 1990) more than the RBA rate.
ASX-LISTED FLOATING RATE NOTES
| COMPANY | CODE | BOND TYPE | MATURITY | ISSUE MARGIN | TRADING MARGIN | Δ WEEK | WEEK CLOSE | RUNNING YIELD** |
|---|---|---|---|---|---|---|---|---|
| Omni Bridgeway | OBLHA | Bond | 31-Jan-22 | 4.20% | 4.52% | -1.35% | 100.00 | 4.23% |
| Centuria Capital | C2FHA | Sec. Note | 20-Apr-26 | 4.25% | 4.63% | 2.46% | 100.20 | 4.67% |
| Peet | PPCHB | Bond | 5-Oct-22 | 3.65% | 1.70% | 0.33% | 101.10 | 2.21% |
| Nat. Aust. Bank | NABPE | Sub. Note Tier 2 | 20-Jun-23 | 2.20% | 2.08% | 0.00% | 103.60 | 3.79% |
| Qube Holdings | QUBHA | Sub. Note | 5-Oct-23 | 3.90% | 3.38% | 0.35% | 103.50 | 4.17% |
| Australian Unity | AYUHC | Bond Series C | 15-Dec-24 | 2.00% | 2.18% | 0.35% | 99.50 | 2.04% |
| Australian Unity | AYUHD | Bond Series D | 15-Dec-26 | 2.15% | 1.93% | 0.01% | 101.10 | 2.15% |
** Clean running yield.