Trading margins of ASX-listed notes and bonds fell again on average for a fourth consecutive week, with six falls and two rises. However, the largest change came from one of the two securities whose margin actually increased. Australian Unity Bonds (ASX code: AYUHB, +84bps) has a large bid-offer spread and so its margins tend to jump around when buyers or sellers become impatient to do the deal.
The current 3-month BBSW rate is around 1.25%. Add the trading margin from the above chart or from the tables to 1.25% 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** |
|---|---|---|---|---|---|---|---|---|
| Australian Unity | AYUHB | Unsub. Bond | 15-Dec-20 | 2.80% | 2.22% | 0.84% | 101.70 | 4.01% |
| Crown | CWNHB | Sub Note | 23-Jul-21 | 4.00% | 2.95% | -0.26% | 102.25 | 5.14% |
| Bentham IMF | IMFHA | Bond | 31-Jan-22 | 4.20% | 4.02% | -0.21% | 101.80 | 5.41% |
| Nat Aust Bank | NABPE | Sub Note T2 | 20-Jun-23 | 2.20% | 1.75% | -0.17% | 101.80 | 3.38% |
| Peet | PPCHB | Bond | 5-Oct-22 | 3.65% | 3.19% | -0.21% | 105.72 | 5.65% |
| Qube Holdings | QUBHA | Sub Note | 5-Oct-23 | 3.90% | 1.98% | -0.17% | 108.50 | 4.79% |
| Tatts | TTSHA | Snr. Bond | 5-Jul-19 | 3.10% | 3.64% | 1.77% | 101.00 | 4.35% |
| Villa World | VLWHA | Snr. Bond | 21-Apr-22 | 4.75% | 4.29% | -0.32% | 102.40 | 5.92% |
** Clean running yield.