Trading margins of ASX-listed notes and bonds mostly increased and there was only one security whose margin fell for the week. National Australia Bank’s Subordinated Notes (ASX code: NABPE, -27bps) was favoured by investors in this space while trading margins of other securities either remained unchanged or increased a little.
The current 3-month BBSW rate is around 0.99%. Add the trading margin from the above chart or from the tables to 0.99% 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% | 1.05% | 0.00% | 102.75 | 3.71% |
| Crown | CWNHB | Sub Note | 23-Jul-21 | 4.00% | 3.16% | 0.10% | 102.61 | 4.91% |
| Bentham IMF | IMFHA | Bond | 31-Jan-22 | 4.20% | 3.24% | 0.00% | 103.00 | 5.07% |
| Nat Aust Bank | NABPE | Sub Note T2 | 20-Jun-23 | 2.20% | 1.46% | -0.27% | 103.40 | 3.10% |
| Peet | PPCHB | Bond | 5-Oct-22 | 3.65% | 2.95% | 0.07% | 105.70 | 5.38% |
| Qube Holdings | QUBHA | Sub Note | 5-Oct-23 | 3.90% | 1.96% | 0.18% | 107.90 | 4.56% |
| Villa World | VLWHA | Snr. Bond | 21-Apr-22 | 4.75% | 4.51% | 0.09% | 101.30 | 5.70% |
** Clean running yield.