Trading margins of ASX-listed notes and bonds mostly increased. The trading margin of Crown Series 2 Notes (ASX code: CWNHB, +434bps) blew out, although it has a July 2021 call date so it would be getting quite volatile because of the call date’s proximity. Bentham IMF Bonds (ASX code: IMFHA, +234bps) were sold off on news of the Federal Government’s plan for class actions. The trading margin of Australian Unity Series C bonds (ASX code: AYUHC, +107bps) also increased significantly again.
The current 3-month BBSW rate is around 0.10%. 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% | 3.51% | 0.71% | 100.00 | 2.90% |
| Crown | CWNHB | Sub. Note | 23-Jul-21 | 4.00% | 8.34% | 4.34% | 96.25 | 4.29% |
| Bentham IMF | IMFHA | Bond | 31-Jan-22 | 4.20% | 6.54% | 2.34% | 97.10 | 4.45% |
| Villa World | VLWHA | Snr. Bond | 21-Apr-22 | 4.75% | 5.66% | 0.91% | 100.00 | 4.91% |
| Peet | PPCHB | Bond | 5-Oct-22 | 3.65% | 5.21% | 0.56% | 99.55 | 4.79% |
| Nat. Aust. Bank | NABPE | Sub. Note Tier 2 | 20-Jun-23 | 2.20% | 2.89% | 0.69% | 98.40 | 2.34% |
| Qube Holdings | QUBHA | Sub. Note | 5-Oct-23 | 3.90% | 3.86% | -0.04% | 100.75 | 3.98% |
| Australian Unity | AYUHC | Bond Series C | 15-Dec-24 | 2.00% | 3.07% | 1.07% | 96.00 | 2.18% |
| Australian Unity | AYUHD | Bond Series D | 15-Dec-26 | 2.15% | 3.05% | 0.90% | 95.40 | 2.36% |