Summary: Trading margins display bias towards rises; margins of Peet Bonds, Qube Notes have largest increases.
Trading margins of ASX-listed notes and bonds displayed a rising bias this week. The trading margins of Peet Bonds (ASX code: PPCHA, +50bps) and Qube Notes (ASX code: QUBHA, +37bps) both rose noticeably after trending down in recent weeks.
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% | 20.01% | 3.12% | 95.75 | 4.22% |
| Omni Bridgeway | OBLHA | Bond | 31-Jan-22 | 4.20% | 5.27% | -0.19% | 99.10 | 4.27% |
| Peet | PPCHB | Bond | 5-Oct-22 | 3.65% | 3.06% | 0.50% | 102.30 | 4.58% |
| Nat. Aust. Bank | NABPE | Sub. Note Tier 2 | 20-Jun-23 | 2.20% | 1.50% | -0.01% | 101.75 | 2.20% |
| Qube Holdings | QUBHA | Sub. Note | 5-Oct-23 | 3.90% | 2.50% | 0.37% | 103.30 | 3.81% |
| Australian Unity | AYUHC | Bond Series C | 15-Dec-24 | 2.00% | 2.49% | 0.07% | 98.30 | 2.07% |
| Australian Unity | AYUHD | Bond Series D | 15-Dec-26 | 2.15% | 2.64% | -0.13% | 97.52 | 2.24% |