Trading margins of ASX-listed notes and bonds rebounded somewhat this week and the median trading margin increased from 1.49% to 1.59%. Excluding securities which are close to maturity, the increase in the median margin was driven by AMP Notes (ASX code: AMPHA, +61bps) and Australian Unity Notes (ASX code: AYUHA, +42bps) while rises from Crown Notes 1 (ASX code: CWNHA, -48bps) and AGL Notes (ASX code: AGLHA, -36bps) provided some offset.
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 1.70%. Add the trading margin from the above chart or from the tables to 1.70% 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% | 1.55% | -0.33% | 104.35 | 5.31% |
| AMP | AMPHA | Sub Note II | 18-Dec-18 | 2.65% | 1.13% | 0.61% | 102.25 | 4.28% |
| APT Pipelines | AQHHA | Sub Note | 31-Mar-18 | 4.50% | 1.72% | 0.59% | 101.70 | 6.13% |
| Australian Unity | AYUHB | Unsub. Bond | 15-Dec-20 | 2.80% | 1.59% | 0.42% | 103.75 | 4.35% |
| Crown | CWNHA | Sub Note | 14-Sep-18 | 5.00% | 2.73% | -0.48% | 102.90 | 6.57% |
| Crown | CWNHB | Sub Note | 23-Jul-21 | 4.00% | 4.37% | -0.16% | 99.90 | 5.75% |
| Bentham IMF | IMFHA | Bond | 30-Jun-19 | 4.20% | 1.96% | 0.02% | 104.00 | 5.70% |
| Nat Aust Bank | NABPE | Sub Note T2 | 20-Jun-23 | 2.20% | 1.49% | 0.07% | 104.10 | 3.76% |
| Qube Holdings | QUBHA | Sub Note | 5-Oct-23 | 3.90% | 3.61% | -0.01% | 107.19 | 5.25% |
| Suncorp-Metway | SUNPD | Sub NoteI T2 | 21-Nov-18 | 2.85% | 1.21% | -0.28% | 102.64 | 4.47% |
| Tatts | TTSHA | Snr. Bond | 5-Jul-19 | 3.10% | 1.28% | -0.21% | 103.35 | 4.66% |
| Villa World | VLWHA | Snr. Bond | 21-Apr-22 | 4.75% | 4.03% | 0.96% | 103.09 | 6.27% |
| Westpac | WBCHB | Sub Note T2 | 22-Aug-18 | 2.30% | 1.06% | -0.11% | 101.80 | 3.96% |