Summary: Trading margins generally fall; margin of NAB Subordinated Notes has largest decline.
Trading margins of ASX-listed notes and bonds generally fell this week. The trading margin of NAB’s Subordinated Notes (ASX code: NABPE, -22bps) had the largest decline over the week.
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% | 18.30% | -1.72% | 96.55 | 4.20% |
| Omni Bridgeway | OBLHA | Bond | 31-Jan-22 | 4.20% | 4.26% | -1.01% | 100.00 | 4.24% |
| Peet | PPCHB | Bond | 5-Oct-22 | 3.65% | 3.11% | 0.05% | 102.30 | 4.59% |
| Nat. Aust. Bank | NABPE | Sub. Note Tier 2 | 20-Jun-23 | 2.20% | 1.28% | -0.22% | 102.30 | 2.19% |
| Qube Holdings | QUBHA | Sub. Note | 5-Oct-23 | 3.90% | 2.51% | 0.00% | 103.35 | 3.81% |
| Australian Unity | AYUHC | Bond Series C | 15-Dec-24 | 2.00% | 2.30% | -0.19% | 99.00 | 2.06% |
| Australian Unity | AYUHD | Bond Series D | 15-Dec-26 | 2.15% | 2.51% | -0.14% | 98.25 | 2.23% |
** Clean running yield.