Summary: Trading margins generally higher; margin of Peet Bonds reverses course, rises significantly.
Trading margins of ASX-listed notes and bonds tended to rise this week. The trading margin of Peet Bond’s (ASX code: PPCHB, +153bps) experienced a large rise over the week, reversing the previous week’s fall. Other movements over the week were quite modest except for some short-dated securities.
The current 3-month BBSW rate is just above zero. 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% | 5.67% | 6.91% | 100.10 | 2.83% |
| Crown | CWNHB | Sub. Note | 23-Jul-21 | 4.00% | 12.44% | -0.67% | 95.61 | 4.24% |
| Omni Bridgeway | OBLHA | Bond | 31-Jan-22 | 4.20% | 5.36% | -0.13% | 99.25 | 4.27% |
| Peet | PPCHB | Bond | 5-Oct-22 | 3.65% | 6.70% | 1.53% | 97.25 | 4.83% |
| Nat. Aust. Bank | NABPE | Sub. Note Tier 2 | 20-Jun-23 | 2.20% | 1.99% | 0.13% | 100.98 | 2.21% |
| Qube Holdings | QUBHA | Sub. Note | 5-Oct-23 | 3.90% | 2.80% | 0.21% | 103.50 | 3.81% |
| Australian Unity | AYUHC | Bond Series C | 15-Dec-24 | 2.00% | 2.34% | -0.16% | 99.00 | 2.04% |
| Australian Unity | AYUHD | Bond Series D | 15-Dec-26 | 2.15% | 3.16% | 0.14% | 95.08 | 2.29% |
** Clean running yield.