Summary: Trading margins mostly fall; margins of Peet Bonds, Qube Notes have largest drops.
Trading margins of ASX-listed notes and bonds tended to fall this week. The trading margins of Peet Bonds (ASX code: PPCHA, -74bps) and Qube Notes (ASX code: QUBHA, -68bps) both fell noticeably.
Finally, there will be a new listed note hitting the ASX late next month. Early in the week, Centuria Capital announced the issue of floating-rate notes maturing in April 2026, first callable in October 2024. The issue margin was set at 425bps, the low end of the indicative range.
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% | 16.89% | -11.02% | 96.30 | 4.19% |
| Omni Bridgeway | OBLHA | Bond | 31-Jan-22 | 4.20% | 5.46% | 0.25% | 99.90 | 4.27% |
| Peet | PPCHB | Bond | 5-Oct-22 | 3.65% | 2.56% | -0.74% | 103.00 | 4.54% |
| Nat. Aust. Bank | NABPE | Sub. Note Tier 2 | 20-Jun-23 | 2.20% | 1.51% | 0.09% | 101.70 | 2.19% |
| Qube Holdings | QUBHA | Sub. Note | 5-Oct-23 | 3.90% | 2.14% | -0.68% | 104.15 | 3.77% |
| Australian Unity | AYUHC | Bond Series C | 15-Dec-24 | 2.00% | 2.42% | -0.16% | 99.00 | 2.06% |
| Australian Unity | AYUHD | Bond Series D | 15-Dec-26 | 2.15% | 2.77% | -0.02% | 97.38 | 2.25% |