Trading margins of ASX-listed notes and bonds did not move in a clear direction over the week, with almost an equal number of securities on either side. The trading margin of Crown Series 2 Notes (ASX code: CWNHB, -123bps) fell significantly again while the margin of NAB Subordinated Bonds (ASX code: NABPE, -39bps) had a smaller but still notable decline.
The current 3-month BBSW rate is around 0.10%. 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.
ASX-LISTED FLOATING RATE NOTES
| COMPANY | CODE | BOND TYPE | MATURITY | ISSUE MARGIN | TRADING MARGIN | Δ WEEK | WEEK CLOSE | RUNNING YIELD** |
|---|---|---|---|---|---|---|---|---|
| Australian Unity | AYUHB | Bond Series B | 15-Dec-20 | 2.80% | 3.62% | 1.05% | 100.01 | 2.91% |
| Crown | CWNHB | Sub. Note | 23-Jul-21 | 4.00% | 6.63% | -1.23% | 97.15 | 4.21% |
| Bentham IMF | IMFHA | Bond | 31-Jan-22 | 4.20% | 5.71% | -0.16% | 98.50 | 4.40% |
| Villa World | VLWHA | Snr. Bond | 21-Apr-22 | 4.75% | 5.73% | 0.04% | 100.00 | 4.93% |
| Peet | PPCHB | Bond | 5-Oct-22 | 3.65% | 5.16% | 0.12% | 99.85 | 4.80% |
| Nat. Aust. Bank | NABPE | Sub. Note Tier 2 | 20-Jun-23 | 2.20% | 2.40% | -0.39% | 100.00 | 2.31% |
| Qube Holdings | QUBHA | Sub. Note | 5-Oct-23 | 3.90% | 3.76% | -0.26% | 101.20 | 3.98% |
| Australian Unity | AYUHC | Bond Series C | 15-Dec-24 | 2.00% | 2.96% | 0.14% | 96.50 | 2.18% |
| Australian Unity | AYUHD | Bond Series D | 15-Dec-26 | 2.15% | 2.60% | -0.01% | 97.90 | 2.31% |
** Clean running yield.