Summary: Trading margin movements generally rise; one major exception.
Trading margins of ASX-listed notes and bonds generally rose for a second consecutive week. The one major exception came from Australian Unity Series D Notes (ASX code: AYUHD, -45bps). The trading margin of Australian Unity’s Series C Notes (ASX code: AYUHC, +48bps) went very much in the other direction, as did the margin of Peet Bonds (ASX code: PPCHB, +55bps).
(Crown Subordinated Notes 2 (ASX code: CWNHB) are not displayed.)
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** |
|---|---|---|---|---|---|---|---|---|
| Crown | CWNHB | Sub. Note | 23-Jul-21 | 4.00% | 23.73% | -0.02% | 92.00 | 4.38% |
| Omni Bridgeway | OBLHA | Bond | 31-Jan-22 | 4.20% | 4.78% | 0.35% | 99.65 | 4.23% |
| Peet | PPCHB | Bond | 5-Oct-22 | 3.65% | 5.81% | 0.55% | 98.50 | 4.74% |
| Nat. Aust. Bank | NABPE | Sub. Note Tier 2 | 20-Jun-23 | 2.20% | 1.72% | 0.12% | 101.45 | 2.18% |
| Qube Holdings | QUBHA | Sub. Note | 5-Oct-23 | 3.90% | 3.05% | 0.10% | 102.40 | 3.83% |
| Australian Unity | AYUHC | Bond Series C | 15-Dec-24 | 2.00% | 2.77% | 0.48% | 97.35 | 2.07% |
| Australian Unity | AYUHD | Bond Series D | 15-Dec-26 | 2.15% | 2.46% | -0.45% | 98.49 | 2.19% |