Trading margins of ASX-listed notes and bonds varied in a fairly narrow band centred on zero, although there were two notable exceptions. Peet Bonds (ASX code: PPCHB, -136bps) and Australian Unity (ASX code: AYUHB, -41bps) had the largest movements of the week. Peet’s bonds currently have a large bid-offer spread and it appears a buyer got a little impatient at the end of the week and “hit the offer”.
Bentham IMF bonds (ASX code: IMFHA, +43bps) and Peet Bonds (ASX code: PPCHB, +35bps) had the largest movements of the week.
The current 3-month BBSW rate is around 1.63%. Add the trading margin from the above chart or from the tables to 1.63% 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% | 4.97% | 1.13% | 101.02 | 5.43% |
| Australian Unity | AYUHB | Unsub. Bond | 15-Dec-20 | 2.80% | 1.60% | -0.41% | 102.30 | 4.34% |
| Crown | CWNHB | Sub Note | 23-Jul-21 | 4.00% | 3.68% | 0.15% | 101.80 | 5.58% |
| Bentham IMF | IMFHA | Bond | 31-Jan-22 | 4.20% | 4.10% | -0.16% | 101.10 | 5.80% |
| Nat Aust Bank | NABPE | Sub Note T2 | 20-Jun-23 | 2.20% | 1.82% | -0.03% | 102.20 | 3.77% |
| Peet | PPCHB | Bond | 5-Oct-22 | 3.65% | 3.43% | -1.36% | 104.50 | 6.05% |
| Qube Holdings | QUBHA | Sub Note | 5-Oct-23 | 3.90% | 2.20% | 0.06% | 107.20 | 5.19% |
| Tatts | TTSHA | Snr. Bond | 5-Jul-19 | 3.10% | 3.71% | 0.04% | 100.50 | 4.73% |
| Villa World | VLWHA | Snr. Bond | 21-Apr-22 | 4.75% | 4.91% | 0.02% | 100.30 | 6.38% |