Summary: Trading margin movements mixed; some large movements over week.
Trading margins of ASX-listed notes and bonds moved in no clear direction this week. The trading margin of Omni Bridgeway Bonds (ASX: OBLHA, -86bps) continued to swing up and down, Australian Unity Series C Bonds (ASX code: AYUHC, +62bps) increased for a second consecutive week while Peet Bonds (ASX code: PPCHB, +55bps) reversed all of the previous week’s change, plus a bit more.
The current 3-month BBSW rate is around 0.10%. Add the trading margin from the above chart or from the tables to this figure 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% | 0.66% | -2.59% | 101.05 | 2.87% |
| Crown | CWNHB | Sub. Note | 23-Jul-21 | 4.00% | 14.86% | 3.02% | 92.00 | 4.45% |
| Omni Bridgeway | OBLHA | Bond | 31-Jan-22 | 4.20% | 4.35% | -0.86% | 100.72 | 4.30% |
| Villa World | VLWHA | Snr. Bond | 21-Apr-22 | 4.75% | 6.41% | 0.05% | 100.00 | 4.95% |
| Peet | PPCHB | Bond | 5-Oct-22 | 3.65% | 5.83% | 0.55% | 98.90 | 4.84% |
| Nat. Aust. Bank | NABPE | Sub. Note Tier 2 | 20-Jun-23 | 2.20% | 1.92% | 0.00% | 100.80 | 2.27% |
| Qube Holdings | QUBHA | Sub. Note | 5-Oct-23 | 3.90% | 2.65% | -0.17% | 104.40 | 3.85% |
| Australian Unity | AYUHC | Bond Series C | 15-Dec-24 | 2.00% | 3.31% | 0.62% | 95.50 | 2.20% |
| Australian Unity | AYUHD | Bond Series D | 15-Dec-26 | 2.15% | 2.61% | 0.07% | 98.00 | 2.30% |