Summary: Upward bias to trading margin movements; several large movements over week.
Trading margins of ASX-listed notes and bonds displayed a tendency to rise for a second consecutive week. The trading margin of Villa World Bonds (ASX code: VWDHA, +151bps) reversed all of the previous week’s fall, plus a bit more, as did Omni Bridgeway Bonds (ASX: OBLHA, +106bps) and Australian Unity Series D Bonds (ASX code: AYUHD, + 71bps).
Note: IMF Bentham (ASX code: IMF) has changed its name to Omni Bridgeway (ASX code: OBL).
The current 3-month BBSW rate is around 0.10%. 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** |
|---|---|---|---|---|---|---|---|---|
| Australian Unity | AYUHB | Bond Series B | 15-Dec-20 | 2.80% | 2.75% | -0.05% | 100.38 | 2.89% |
| Crown | CWNHB | Sub. Note | 23-Jul-21 | 4.00% | 11.19% | 7.19% | 95.00 | 4.35% |
| Omni Bridgeway | OBLHA | Bond | 31-Jan-22 | 4.20% | 5.26% | 1.06% | 99.25 | 4.35% |
| Villa World | VLWHA | Snr. Bond | 21-Apr-22 | 4.75% | 6.26% | 1.51% | 100.00 | 4.95% |
| Peet | PPCHB | Bond | 5-Oct-22 | 3.65% | 5.10% | 0.45% | 99.95 | 4.78% |
| Nat. Aust. Bank | NABPE | Sub. Note Tier 2 | 20-Jun-23 | 2.20% | 1.88% | -0.32% | 101.39 | 2.27% |
| Qube Holdings | QUBHA | Sub. Note | 5-Oct-23 | 3.90% | 2.99% | -0.91% | 103.25 | 3.89% |
| Australian Unity | AYUHC | Bond Series C | 15-Dec-24 | 2.00% | 2.13% | 0.13% | 99.80 | 2.10% |
| Australian Unity | AYUHD | Bond Series D | 15-Dec-26 | 2.15% | 2.86% | 0.71% | 96.50 | 2.33% |