Summary: Trading margins display downward bias; Peet stands out.
Trading margins of ASX-listed notes and bonds displayed a downward bias this week. The trading margin of Peet Bonds (ASX code: PPCHB, -130bps) had the largest fall over the week, reversing much of the previous week’s rise.
Crown Subordinated Notes 2 (ASX code: CWNHB) are not displayed.
The current 3-month BBSW rate is just a few basis points 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** |
|---|---|---|---|---|---|---|---|---|
| Crown | CWNHB | Sub. Note | 23-Jul-21 | 4.00% | 21.21% | 2.93% | 98.06 | 4.15% |
| Omni Bridgeway | OBLHA | Bond | 31-Jan-22 | 4.20% | 4.99% | 0.00% | 100.00 | 4.26% |
| Centuria Capital | C2FHA | Sec. Note | 20-Apr-26 | 4.25% | 3.77% | -1.30% | 101.80 | 4.64% |
| Peet | PPCHB | Bond | 5-Oct-22 | 3.65% | 1.57% | -0.01% | 101.80 | 2.21% |
| Nat. Aust. Bank | NABPE | Sub. Note Tier 2 | 20-Jun-23 | 2.20% | 2.80% | -0.11% | 103.00 | 3.85% |
| Qube Holdings | QUBHA | Sub. Note | 5-Oct-23 | 3.90% | 3.18% | -0.06% | 103.75 | 4.15% |
| Australian Unity | AYUHC | Bond Series C | 15-Dec-24 | 2.00% | 2.48% | 0.27% | 98.65 | 2.08% |
| Australian Unity | AYUHD | Bond Series D | 15-Dec-26 | 2.15% | 2.21% | -0.11% | 99.99 | 2.20% |
** Clean running yield.