Trading margins of ASX-listed notes and bonds did not act particularly consistently this week. Peet Bonds (ASX code: PPCHB, +126bps) suffered a noticeable sell-off but, on closer inspection, the increase in its trading margin turned out to be the result of a small number of securities being sold in a hurry into a market with a wide bid/offer spread.
Bentham IMF (ASX code: IMFHA, +59bps) also took a small beating.
The current 3-month BBSW rate is around 1.00%. Add the trading margin from the above chart or from the tables to 1.00% 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% | 1.08% | 0.03% | 102.70 | 3.69% |
| Crown | CWNHB | Sub Note | 23-Jul-21 | 4.00% | 3.22% | 0.05% | 102.60 | 4.89% |
| Bentham IMF | IMFHA | Bond | 31-Jan-22 | 4.20% | 3.29% | 0.05% | 102.92 | 5.06% |
| Nat Aust Bank | NABPE | Sub Note T2 | 20-Jun-23 | 2.20% | 1.68% | 0.22% | 102.65 | 3.11% |
| Peet | PPCHB | Bond | 5-Oct-22 | 3.65% | 2.91% | -0.05% | 105.85 | 5.35% |
| Qube Holdings | QUBHA | Sub Note | 5-Oct-23 | 3.90% | 1.94% | -0.03% | 108.00 | 4.54% |
| Villa World | VLWHA | Snr. Bond | 21-Apr-22 | 4.75% | 4.70% | 0.19% | 100.94 | 5.70% |
** Clean running yield.