ASX listed notes

20 May – 24 May 2019

Trading margins of ASX-listed notes and bonds had a slight downwards bias, with 5 falls and 4 rises and not an unusual amount of volatility. There were two notable exceptions and they were the same as in the previous week.

Peet Bonds (ASX code: PPCHB, +72bps) partially reversed a 136bps fall from the previous week, as did Australian Unity Bonds (ASX code: AYUHB, +25bps). Note Peet’s bonds currently have a large bid-offer spread.

AGL Energy issued a redemption notice which advised holders of its intention to redeem its $650 million of subordinated notes (ASX code: AGLHA) on 11 June 2019. Noteholders who are on the register at 7.00 pm on 31 May 2019 will be paid the notes’ $100 face value plus a final interest payment of $1.4732 on 11 June 2019. The notes’ last day of trading will be 29 May 2019. They are not shown in the chart below.

The current 3-month BBSW rate is around 1.50%. Add the trading margin from the above chart or from the tables to 1.50% 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

COMPANYCODEBOND
TYPE
MATURITYISSUE
MARGIN
TRADING
MARGIN
Δ WEEKWEEK
CLOSE
RUNNING
YIELD**
AGLAGLHASub Note8-Jun-193.80%7.80%2.83%101.045.31%
Australian UnityAYUHBUnsub. Bond15-Dec-202.80%1.84%0.25%102.004.24%
CrownCWNHBSub Note23-Jul-214.00%3.58%-0.10%102.105.45%
Bentham IMFIMFHABond31-Jan-224.20%3.86%-0.23%101.755.64%
Nat Aust BankNABPESub Note T220-Jun-232.20%1.83%0.01%102.253.64%
PeetPPCHBBond5-Oct-223.65%4.15%0.72%102.536.05%
Qube HoldingsQUBHASub Note5-Oct-233.90%2.11%-0.09%107.655.05%
TattsTTSHASnr. Bond5-Jul-193.10%2.89%-0.82%100.704.60%
Villa WorldVLWHASnr. Bond21-Apr-224.75%4.82%-0.09%100.656.25%

** Clean running yield.
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