6 Nov – 10 Nov 2017

Trading margins of ASX-listed notes and bonds moved up for a second week in a row and the median trading margin increased from 1.59% to 1.82%. Excluding securities which are close to maturity, the increase in the median margin was driven by Suncorp Notes (ASX code: SUNPD, +24bps) and AGL Notes (ASX code: AGLHA, +27bps).

N.B. Charts of ASX-listed notes are now no longer divided by Financial/Non-financial categories.

The current 3 month BBSW rate is around 1.71%. Add the trading margin from the above chart or from the tables to 1.71% for a 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**
AGL	AGLHA	Sub Note	8-Jun-19	3.80%	1.82%	0.27%	104.00	5.34%
AMP	AMPHA	Sub Note II	18-Dec-18	2.65%	1.23%	0.10%	102.20	4.29%
APT Pipelines	AQHHA	Sub Note	31-Mar-18	4.50%	2.10%	0.39%	101.62	6.15%
Australian Unity	AYUHB	Unsub. Bond	15-Dec-20	2.80%	1.72%	0.13%	103.45	4.37%
Crown	CWNHA	Sub Note	14-Sep-18	5.00%	2.84%	0.10%	102.90	6.58%
Crown	CWNHB	Sub Note	23-Jul-21	4.00%	4.37%	-0.01%	100.03	5.75%
Bentham IMF	IMFHA	Bond	30-Jun-19	4.20%	1.95%	-0.02%	104.10	5.70%
Nat Aust Bank	NABPE	Sub Note T2	20-Jun-23	2.20%	1.35%	-0.15%	104.90	3.74%
Qube Holdings	QUBHA	Sub Note	5-Oct-23	3.90%	3.62%	0.01%	107.19	5.26%
Suncorp-Metway	SUNPD	Sub NoteI T2	21-Nov-18	2.85%	1.45%	0.24%	102.45	4.49%
Tatts	TTSHA	Snr. Bond	5-Jul-19	3.10%	1.28%	0.01%	103.40	4.67%
Villa World	VLWHA	Snr. Bond	21-Apr-22	4.75%	3.98%	-0.05%	103.40	6.26%
Westpac	WBCHB	Sub Note T2	22-Aug-18	2.30%	1.26%	0.20%	101.70	3.97%