The majority of trading margins of ASX-listed notes and bonds fell this week, mostly by small amounts. In contrast, the trading margin of Australian Unity Bonds (ASX code: AYUHB, -37bps) moved by quite a bit as it reversed a lot of the previous week’s change, having announced a new issue of 2024 and 2026 bonds . These new securities will be listed on the ASX alongside any existing December 2020 bonds which have not been rolled over.
The other exceptions were a couple of securities whose trading margins increased. Bentham IMF (ASX code: IMFHA, +36bps) has been especially volatile in recent weeks, as have Peet Bonds (ASX code: PPCHB, +22bps).
The current 3-month BBSW rate is around 0.92%. Add the trading margin from the above chart or from the tables to 0.92% 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% | 1.35% | -0.37% | 102.50 | 3.71% |
| Crown | CWNHB | Sub Note | 23-Jul-21 | 4.00% | 2.93% | -0.01% | 102.00 | 4.88% |
| Bentham IMF | IMFHA | Bond | 31-Jan-22 | 4.20% | 3.61% | 0.36% | 102.50 | 5.10% |
| Nat Aust Bank | NABPE | Sub Note T2 | 20-Jun-23 | 2.20% | 1.70% | -0.04% | 101.90 | 3.11% |
| Peet | PPCHB | Bond | 5-Oct-22 | 3.65% | 3.86% | 0.22% | 103.51 | 5.50% |
| Qube Holdings | QUBHA | Sub Note | 5-Oct-23 | 3.90% | 1.77% | -0.17% | 108.80 | 4.52% |
| Villa World | VLWHA | Snr. Bond | 21-Apr-22 | 4.75% | 4.64% | -0.01% | 101.40 | 5.70% |