Trading margins of ASX-listed notes and bonds fell significantly this week, with five falls and one token rise. Qube Notes (ASX code: QUBHA, -205bps), Peet Bonds (ASX code: PPCHB, -149bps), Bentham IMF Bonds (ASX code: IMFHA, -97bps) and Crown Series 2 Notes (ASX code: CWNHB, -86bps) all fell by considerably more than normal amounts.
The current 3-month BBSW rate is around 0.85%. Add the trading margin from the above chart or from the tables to 0.85% 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 | Unsub. Bond | 15-Dec-20 | 2.80% | 2.77% | -0.03% | 100.11 | 3.65% |
| Crown | CWNHB | Sub Note | 23-Jul-21 | 4.00% | 3.14% | -0.86% | 102.00 | 4.78% |
| Bentham IMF | IMFHA | Bond | 31-Jan-22 | 4.20% | 3.23% | -0.97% | 102.30 | 4.95% |
| Nat Aust Bank | NABPE | Sub Note T2 | 20-Jun-23 | 2.20% | 1.79% | -0.41% | 101.80 | 3.01% |
| Peet | PPCHB | Bond | 5-Oct-22 | 3.65% | 3.16% | -1.49% | 104.28 | 5.29% |
| Qube Holdings | QUBHA | Sub Note | 5-Oct-23 | 3.90% | 1.85% | -2.05% | 107.50 | 4.43% |
| Villa World | VLWHA | Snr. Bond | 21-Apr-22 | 4.75% | 4.81% | 0.06% | 100.00 | 5.60% |
** Clean running yield.