Summary: Trading margins display falling bias; margin of Centuria notes noticeably lower.
Trading margins of ASX-listed notes and bonds displayed a bias towards falls this week, although movements were generally small with one exception. The margin of Centuria Capital Number 2 Fund Secured Notes (ASX code: C2FHA, -54bps) fell noticeably in its first full week of trading.
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% | 14.57% | -0.04% | 98.25 | 4.14% |
| Omni Bridgeway | OBLHA | Bond | 31-Jan-22 | 4.20% | 4.45% | -0.02% | 100.10 | 4.25% |
| Centuria Capital | C2FHA | Sec. Note | 20-Apr-26 | 4.25% | 3.61% | 0.12% | 101.80 | 4.62% |
| Peet | PPCHB | Bond | 5-Oct-22 | 3.65% | 1.27% | -0.18% | 102.40 | 2.19% |
| Nat. Aust. Bank | NABPE | Sub. Note Tier 2 | 20-Jun-23 | 2.20% | 2.30% | 0.10% | 104.00 | 3.80% |
| Qube Holdings | QUBHA | Sub. Note | 5-Oct-23 | 3.90% | 3.12% | -0.54% | 103.75 | 4.14% |
| Australian Unity | AYUHC | Bond Series C | 15-Dec-24 | 2.00% | 1.97% | 0.02% | 100.21 | 2.04% |
| Australian Unity | AYUHD | Bond Series D | 15-Dec-26 | 2.15% | 2.35% | -0.02% | 99.15 | 2.21% |