Summary: Trading margins exhibit rising bias; NABPE notable exception.
Trading margins of ASX-listed notes and bonds exhibited a bias towards rises this week. The trading margin of NAB Subordinated Notes (NABPE, -38bps) proved to be a notable exception.
Crown Subordinated Notes 2 (ASX code: CWNHB) are displayed with a value which does not include any capital gain/loss component. Crown will not be redeeming them on the July 2021 call date; a “review” has been flagged for May/June 2022.
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% | 4.33% | n/a | 95.52 | 4.22% |
| Omni Bridgeway | OBLHA | Bond | 31-Jan-22 | 4.20% | 5.80% | 0.02% | 100.00 | 4.27% |
| Centuria Capital | C2FHA | Sec. Note | 20-Apr-26 | 4.25% | 4.57% | 0.08% | 100.04 | 4.67% |
| Peet | PPCHB | Bond | 5-Oct-22 | 3.65% | 1.10% | -0.38% | 102.44 | 2.18% |
| Nat. Aust. Bank | NABPE | Sub. Note Tier 2 | 20-Jun-23 | 2.20% | 2.73% | 0.05% | 102.47 | 3.83% |
| Qube Holdings | QUBHA | Sub. Note | 5-Oct-23 | 3.90% | 3.21% | -0.02% | 104.00 | 4.14% |
| Australian Unity | AYUHC | Bond Series C | 15-Dec-24 | 2.00% | 2.45% | 0.23% | 99.00 | 2.06% |
| Australian Unity | AYUHD | Bond Series D | 15-Dec-26 | 2.15% | 2.42% | 0.07% | 99.20 | 2.20% |