Trading margins of ASX-listed notes and bonds fell back a modest amount after two weeks of increases. The median trading margin dropped by 5bps to 2.18% as most trading margins moved within a fairly tight range.
Soon, the ASX-listed notes space will become a little smaller. APA Group announced its listed subordinated notes (ASX code: AQHHA) will be redeemed for $100 face value plus $1.551 interest on 31 March 2018. The last day of ASX trading will be on 21 March 2018.
The current 3 month BBSW rate is around 1.77%. Add the trading margin from the above chart or from the tables to 1.77% 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% | 2.18% | -0.06% | 103.25 | 5.45% |
| AMP | AMPHA | Sub Note II | 18-Dec-18 | 2.65% | 1.27% | -0.05% | 101.95 | 4.37% |
| APT Pipelines | AQHHA | Sub Note | 31-Mar-18 | 4.50% | 3.45% | 0.40% | 101.00 | 6.26% |
| Australian Unity | AYUHB | Unsub. Bond | 15-Dec-20 | 2.80% | 1.44% | 0.28% | 104.10 | 4.41% |
| Crown | CWNHA | Sub Note | 14-Sep-18 | 5.00% | 3.30% | -0.27% | 102.30 | 6.70% |
| Crown | CWNHB | Sub Note | 23-Jul-21 | 4.00% | 3.78% | -0.15% | 102.00 | 5.71% |
| Bentham IMF | IMFHA | Bond | 30-Jun-19 | 4.20% | 2.67% | 0.07% | 102.80 | 5.84% |
| Nat Aust Bank | NABPE | Sub Note T2 | 20-Jun-23 | 2.20% | 1.52% | -0.02% | 104.04 | 3.84% |
| Qube Holdings | QUBHA | Sub Note | 5-Oct-23 | 3.90% | 3.69% | 0.05% | 106.07 | 5.38% |
| Suncorp-Metway | SUNPD | Sub NoteI T2 | 21-Nov-18 | 2.85% | 1.33% | 0.00% | 101.16 | 4.56% |
| Tatts | TTSHA | Snr. Bond | 5-Jul-19 | 3.10% | 1.36% | 0.42% | 103.00 | 4.75% |
| Villa World | VLWHA | Snr. Bond | 21-Apr-22 | 4.75% | 4.07% | 0.12% | 103.20 | 6.35% |
| Westpac | WBCHB | Sub Note T2 | 22-Aug-18 | 2.30% | 1.34% | 0.02% | 100.50 | 4.05% |