Summary: Trading margins mostly higher; OBLHA’s margin reverses much of previous weeks’ increases.
Trading margins of ASX-listed notes and bonds mostly rose this week. The trading margin of Omni Bridgeway Bonds (ASX code: OBLHA, -75bps) was one of a couple of exceptions as it reversed much of the previous three weeks’ rises. Other movements over the week were quite modest.
The current 3-month BBSW rate is just over 0.05%. 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% | 3.66% | 4.63% | 99.95 | 2.86% |
| Crown | CWNHB | Sub. Note | 23-Jul-21 | 4.00% | 15.26% | 0.25% | 93.00 | 4.39% |
| Omni Bridgeway | OBLHA | Bond | 31-Jan-22 | 4.20% | 4.06% | -0.75% | 100.40 | 4.25% |
| Villa World | VLWHA | Snr. Bond | 21-Apr-22 | 4.75% | 6.70% | 0.06% | 100.00 | 4.94% |
| Peet | PPCHB | Bond | 5-Oct-22 | 3.65% | 6.56% | 0.07% | 97.00 | 4.87% |
| Nat. Aust. Bank | NABPE | Sub. Note Tier 2 | 20-Jun-23 | 2.20% | 1.98% | 0.07% | 100.85 | 2.25% |
| Qube Holdings | QUBHA | Sub. Note | 5-Oct-23 | 3.90% | 2.37% | -0.28% | 104.45 | 3.80% |
| Australian Unity | AYUHC | Bond Series C | 15-Dec-24 | 2.00% | 2.29% | 0.01% | 99.00 | 2.08% |
| Australian Unity | AYUHD | Bond Series D | 15-Dec-26 | 2.15% | 2.93% | 0.03% | 96.00 | 2.30% |
** Clean running yield.