Summary: Margins rise on average; rises outweigh falls by 2:1; margins of , AMPPB, MQGPC, NABPH largest movers over week; 3-month BBSW steady.
The median margin of ASX-listed hybrids to BBSW fell back as the number of securities with narrower spreads to BBSW outweighed securities with wider spreads by a ratio of about 3:1. At the end of the week, the median trading margin was 2.94%, down 15bps from the previous week’s closing value.
Margins of the majority of hybrids varied within a range of -35bps to +5bps. Ignoring short-dated securities, the margins of AMP Capital Notes 2 (AMPPB, -77bps), Macquarie Capital Notes 3 (MQGPC, -64bps) and NAB Capital Notes 5 (NABPG, -51bps) had the largest (absolute) changes over the week.
Westpac announced it latest hybrid security offer on Monday. The 3.10% issue margin was set on Wednesday after Westpac accepted $1.75 billion in applications.
3-month BBSW finished the week steady at 4.38%. 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.
** “Clean” running yield. Includes franking credits if present.
ASX-LISTED FLOATING RATE NOTES
| COMPANY | CODE | BOND TYPE | MATURITY | ISSUE MARGIN | TRADING MARGIN | Δ WEEK | WEEK CLOSE | RUNNING YIELD** |
|---|---|---|---|---|---|---|---|---|
| Centuria Capital | C2FHA | Note | 20-Oct-24 | 4.25% | 5.66% | -0.08% | 99.80 | 8.74% |
| Australian Unity | AYUHC | Bond Series C | 15-Dec-24 | 2.00% | 2.87% | -0.47% | 99.90 | 6.45% |
| Australian Unity | AYUHD | Bond Series D | 15-Dec-26 | 2.15% | 2.60% | 0.11% | 99.80 | 6.61% |
CASH ACCOUNTS
| Product | Interest Rate p.a. | Notes |
|---|---|---|
| AMP Saver Account | 5.20% | Min. monthly $1,000 dep. Limit $250,000. |
| ANZ Premium | 0.05% | $10,000 - $499,999 |
| ANZ Progress Saver | 4.25% | Make at least one deposit of $10 or more in a month, make no withdrawals (including transfers), or incur any fees, charges in the month. |
| Arab Bank Online Savings | 1.00% | On balances of $250,000 to $499,999 |
| Bankwest Smart eSaver | 2.45% | On balances up to $500,000.99 with no withdrawals in that month |
| BOQ Fast Track Saver | 2.75% | $1000 minimum monthly deposit. On balances up to $250,000, over part the Base Rate of 0.05% p.a. applies |
| BoQ Bonus Interest Savings | 2.75% | Bonus interest is paid into your account when you limit your withdrawals to a maximum of one per month |
| CBA NetBank Saver | 2.35% | 2.40% p.a. fixed bonus margin for the first 5 months on your first NetBank Saver |
| CBA Goal Saver Account | 4.90% | At least 1 deposit required; balance at end of month must exceed balance at start of month. |
| Great Southern Bank | 4.20% | No bonus conditions |
| Heritage Online Saver | 3.40% | $1 or more, bonus intro rate 1.45% (promotional 4 month rate on new accounts up to $100,000) |
| ING Savings Accelerator | 4.70% | $150,000 and over |
| Macquarie CMA | 3.00% | Minimum $5,000 |
| ME Online Savings | 4.25% | Have both Online Savings Account and Everyday Transaction Account. On balances up to $250,000. Make at least four "tap & go" purchases per month. |
| NAB iSaver | 2.00% | Bonus rate 2.65% for the first four months when you open your first NAB iSaver account |
| NAB Reward Saver | 5.00% | make at least one deposit on or before the second last banking day of the month and no withdrawals during the month |
| Rabobank PremiumSaver | 5.10% | On balances to $250,000. Balance increased by $200 a month. |
| RAMS Saver Account | 1.40% | On balances to $500,000. Minimum $200 deposit each month with no withdrawals. |
| Suncorp Growth Saver | 5.05% | Minimum $200 deposit each month and no more than 1 withdrawal |
| ubank Save Account | 5.00% | On a combined balance of up to $250,000. Minimum $200 deposit each month into Spend or Save accounts. |
| Up Savers Account | 4.35% | Make 5 successful purchases using your Up or 2Up debit card or digital wallets in a month. |
| Westpac eSaver | 1.10% | 4.25% p.a. for the first 5 months for new Westpac eSaver customers |
| Westpac Reward Saver | 5.00% | Make a deposit to the account and ensure account balance is higher at the end of the month than the beginning. Keep your account balance above $0 at all times. |