The average trading margin of ASX-listed notes and bonds fell back this week. The average was driven lower mostly by securities with 2018 maturities such as Westpac Notes (ASX code: WBCHA, -88bps), although Tatts Bonds (ASX code: TTSHA, -49bps) and AGL Notes (ASX code: AGLHA, -49bps) also had some effect.
The current 3 month BBSW rate is around 2.07%. Add the trading margin from the above chart or from the tables to 2.07% 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% | 1.88% | -0.49% | 102.00 | 5.76% |
| AMP | AMPHA | Sub Note II | 18-Dec-18 | 2.65% | 3.13% | -0.05% | 99.75 | 4.73% |
| Australian Unity | AYUHB | Unsub. Bond | 15-Dec-20 | 2.80% | 2.02% | -0.10% | 102.70 | 4.78% |
| Crown | CWNHA | Sub Note | 14-Sep-18 | 5.00% | 4.87% | 1.08% | 100.08 | 7.06% |
| Crown | CWNHB | Sub Note | 23-Jul-21 | 4.00% | 3.98% | -0.03% | 100.30 | 6.05% |
| Bentham IMF | IMFHA | Bond | 30-Jun-19 | 4.20% | 3.33% | 0.00% | 102.10 | 6.21% |
| Nat Aust Bank | NABPE | Sub Note T2 | 20-Jun-23 | 2.20% | 1.82% | -0.02% | 101.80 | 4.19% |
| Peet | PPCHB | Bond | 5-Oct-22 | 3.65% | 4.26% | -0.20% | 103.00 | 6.61% |
| Qube Holdings | QUBHA | Sub Note | 5-Oct-23 | 3.90% | 2.61% | -0.14% | 106.90 | 5.64% |
| Suncorp-Metway | SUNPD | Sub NoteI T2 | 21-Nov-18 | 2.85% | 1.60% | -0.66% | 100.86 | 4.89% |
| Tatts | TTSHA | Snr. Bond | 5-Jul-19 | 3.10% | 1.42% | -0.49% | 102.78 | 5.08% |
| Villa World | VLWHA | Snr. Bond | 21-Apr-22 | 4.75% | 3.89% | -0.10% | 104.00 | 6.62% |
| Westpac | WBCHB | Sub Note T2 | 22-Aug-18 | 2.30% | 2.12% | -0.88% | 100.30 | 4.37% |
** Clean running yield.
Dealing: contact Michael Saba, Evans & Partners. +61 3 9631 9813