Trading margins of ASX-listed notes and bonds were almost unchanged on average and the median trading margin crept 1bp lower to 2.19%. On security which stood out was Tatts Bonds (TTSHA, +82bps) but as readers will see below, these securities are really only returning back to the “pack”.
The current 3 month BBSW rate is around 1.96%. Add the trading margin from the above chart or from the tables to 1.96% 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% | 2.19% | -0.01% | 102.10 | 5.64% |
| AMP | AMPHA | Sub Note II | 18-Dec-18 | 2.65% | 0.97% | -0.25% | 101.25 | 4.55% |
| APT Pipelines | AQHHA | Sub Note | 31-Mar-18 | 4.50% | 9.08% | 2.88% | 101.07 | 6.47% |
| Australian Unity | AYUHB | Unsub. Bond | 15-Dec-20 | 2.80% | 1.47% | 0.14% | 104.20 | 4.60% |
| Crown | CWNHA | Sub Note | 14-Sep-18 | 5.00% | 3.96% | 0.12% | 100.60 | 6.92% |
| Crown | CWNHB | Sub Note | 23-Jul-21 | 4.00% | 3.74% | 0.24% | 101.01 | 5.90% |
| Bentham IMF | IMFHA | Bond | 30-Jun-19 | 4.20% | 2.76% | 0.07% | 102.95 | 6.04% |
| Nat Aust Bank | NABPE | Sub Note T2 | 20-Jun-23 | 2.20% | 1.53% | -0.04% | 103.20 | 4.02% |
| Qube Holdings | QUBHA | Sub Note | 5-Oct-23 | 3.90% | 3.73% | 0.01% | 105.50 | 5.61% |
| Suncorp-Metway | SUNPD | Sub NoteI T2 | 21-Nov-18 | 2.85% | 1.55% | 0.65% | 101.20 | 4.76% |
| Tatts | TTSHA | Snr. Bond | 5-Jul-19 | 3.10% | 1.51% | 0.82% | 103.00 | 4.95% |
| Villa World | VLWHA | Snr. Bond | 21-Apr-22 | 4.75% | 4.01% | 0.00% | 103.70 | 6.52% |
| Westpac | WBCHB | Sub Note T2 | 22-Aug-18 | 2.30% | 1.60% | 0.10% | 100.57 | 4.24% |
** Clean running yield.
Dealing: contact Michael Saba, Evans & Partners. +61 3 9631 9813