Summary: No particular trend to trading margins again; margin of QUBHA largest mover over week.
There was no particular trend to trading margins of ASX-listed notes and bonds again this week. Ignoring short-dated securities, the margin of Qube Subordinated Notes (QUBHA, +40bps) experienced the largest (absolute) change over the week.
Crown announced on Monday a “Mandatory Deferral Event” had occurred in respect to its Subordinated Notes 2 (CWNHB). As such, June’s interest payment will be deferred.
ThThe current 3-month BBSW rate is 0.17%. 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.
| COMPANY | CODE | BOND TYPE | MATURITY | ISSUE MARGIN | TRADING MARGIN | Δ WEEK | WEEK CLOSE | RUNNING YIELD** |
|---|---|---|---|---|---|---|---|---|
| Peet | PPCHB | Bond | 5-Oct-22 | 4.65% | 2.11% | 0.07% | 102.35 | 4.74% |
| Nat. Aust. Bank | NABPE | Sub. Note Tier 2 | 20-Jun-23 | 2.20% | 1.79% | 0.16% | 100.60 | 2.35% |
| Qube Holdings | QUBHA | Sub. Note | 5-Oct-23 | 3.90% | 3.08% | 0.40% | 102.05 | 4.01% |
| Centuria Capital | C2FHA | Note | 20-Oct-24 | 4.25% | 3.15% | -0.14% | 103.40 | 4.29% |
| Australian Unity | AYUHC | Bond Series C | 15-Dec-24 | 2.00% | 2.01% | -0.19% | 100.35 | 2.16% |
| Australian Unity | AYUHD | Bond Series D | 15-Dec-26 | 2.15% | 2.23% | -0.13% | 100.10 | 2.32% |
** Clean running yield.