Summary: Trading margins display bias towards rises; margins of PPCHB, AYUHD, NABPE are largest movers.
Trading margins of ASX-listed notes and bonds displayed a bias towards rises this week. Ignoring short-dated securities, the margins of Peet Bonds (code: PPCHB, +36bps), Australian Unity Series D Bonds (code: AYUHD, +36bps) and National Australia Bank Subordinated Notes (code: NABPE, +35bps) had the largest (absolute) changes over the week.
The current 3-month BBSW rate is just a couple of 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** |
|---|---|---|---|---|---|---|---|---|
| Omni Bridgeway | OBLHA | Bond | 31-Jan-22 | 4.20% | 4.94% | -0.80% | 100.00 | 4.23% |
| Centuria Capital | C2FHA | Sec. Note | 20-Apr-26 | 4.25% | 3.23% | 0.36% | 102.05 | 4.59% |
| Peet | PPCHB | Bond | 5-Oct-22 | 3.65% | 1.57% | 0.35% | 101.60 | 2.19% |
| Nat. Aust. Bank | NABPE | Sub. Note Tier 2 | 20-Jun-23 | 2.20% | 2.53% | 0.00% | 103.20 | 3.81% |
| Qube Holdings | QUBHA | Sub. Note | 5-Oct-23 | 3.90% | 2.58% | -0.05% | 105.19 | 4.06% |
| Australian Unity | AYUHC | Bond Series C | 15-Dec-24 | 2.00% | 2.29% | -0.22% | 99.25 | 2.03% |
| Australian Unity | AYUHD | Bond Series D | 15-Dec-26 | 2.15% | 2.58% | 0.36% | 98.15 | 2.21% |