Trading margins of ASX-listed notes and bonds were largely stable on average, with five falls and four rises. Margins of most securities in the sector varied within a modest range, with the exception of Australian Unity Series C Bonds (ASX code: AYUHC, -15bps). The margin of Australian Unity Series B Bonds (ASX code: AYUHB, +92bps) jumped on a 0.80% fall in its price; it is just under 11 months from its December 2020 maturity date.
The current 3-month BBSW rate is around 0.88%. Add the trading margin from the above chart or from the tables to 0.88% 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% | 1.75% | 0.92% | 101.00 | 3.64% |
| Crown | CWNHB | Sub. Note | 23-Jul-21 | 4.00% | 3.05% | -0.08% | 101.90 | 4.81% |
| Bentham IMF | IMFHA | Bond | 31-Jan-22 | 4.20% | 3.53% | 0.08% | 101.50 | 5.01% |
| Villa World | VLWHA | Snr. Bond | 21-Apr-22 | 4.75% | 5.11% | 0.03% | 100.00 | 5.66% |
| Peet | PPCHB | Bond | 5-Oct-22 | 3.65% | 2.97% | 0.03% | 104.44 | 5.30% |
| Nat. Aust. Bank | NABPE | Sub. Note Tier 2 | 20-Jun-23 | 2.20% | 1.58% | -0.10% | 102.40 | 3.01% |
| Qube Holdings | QUBHA | Sub. Note | 5-Oct-23 | 3.90% | 1.75% | -0.01% | 107.45 | 4.45% |
| Australian Unity | AYUHC | Bond Series C | 15-Dec-24 | 2.00% | 1.56% | -0.15% | 102.00 | 2.82% |
| Australian Unity | AYUHD | Bond Series D | 15-Dec-26 | 2.15% | 1.87% | -0.02% | 101.75 | 2.97% |