The majority of trading margins of ASX-listed notes and bonds ended the week lower. Excluding short-dated securities, the largest fall came from Peet Bonds (ASX code: PPCHB, -67bps).
There may be a new addition in this space some in the next few months. Insurance Australia has all but confirmed the redemption of its “RES” Notes (ASX code: IANG) and stated it is likely to finance it with a new tier 2 security.
The current 3 month BBSW rate is around 1.91%. Add the trading margin from the above chart or from the tables to 1.91% 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** |
|---|---|---|---|---|---|---|---|---|
| AGL | AGLHA | Sub Note | 8-Jun-19 | 3.80% | 2.43% | -0.02% | 101.59 | 5.69% |
| Australian Unity | AYUHB | Unsub. Bond | 15-Dec-20 | 2.80% | 0.85% | -0.27% | 103.95 | 4.55% |
| Crown | CWNHB | Sub Note | 23-Jul-21 | 4.00% | 2.99% | 0.04% | 103.50 | 5.77% |
| Bentham IMF | IMFHA | Bond | 31-Jan-22 | 4.20% | 3.76% | n/a | 102.10 | 6.03% |
| Nat Aust Bank | NABPE | Sub Note T2 | 20-Jun-23 | 2.20% | 1.69% | -0.02% | 102.90 | 4.02% |
| Peet | PPCHB | Bond | 5-Oct-22 | 3.65% | 4.20% | -0.67% | 102.50 | 6.45% |
| Qube Holdings | QUBHA | Sub Note | 5-Oct-23 | 3.90% | 1.99% | 0.01% | 108.35 | 5.40% |
| Tatts | TTSHA | Snr. Bond | 5-Jul-19 | 3.10% | 2.19% | 1.25% | 101.00 | 4.99% |
| Villa World | VLWHA | Snr. Bond | 21-Apr-22 | 4.75% | 3.47% | -0.25% | 104.30 | 6.42% |
** Clean running yield.