Trading margins of ASX-listed notes and bonds generally fell, with a few exceptions among short-dated securities. Trading margins of longer-dated securities moved within a range of -10bps to -35bps with the exception of Australian Unity Bonds (ASX code: AYUHB, +1bp).
For readers who are interested in Crown Notes (ASX code: CWNHA), the last day of trading will be on 4 September and they will be redeemed on 14 September.
Bell Potter analysts, Damien Williamson and Barry Ziegler think the shrinking pool of debt securities which are listed on the ASX will continue to disappear. “We expect to see retail access to investment-grade ASX-listed debt securities to continue to diminish given the full prospectus requirements and other costs associated with issuing securities in the ASX-listed debt market. The wholesale market for issuing debt securities is currently quicker, cheaper and more efficient for financial issuers.” Time will tell but, so far, the trend backs their view.
The current 3 month BBSW rate is around 1.95%. Add the trading margin from the above chart or from the tables to 1.95% for a 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** |
|---|---|---|---|---|---|---|---|---|
| AGL | AGLHA | Sub Note | 8-Jun-19 | 3.80% | 1.72% | -0.03% | 102.90 | 5.66% |
| AMP | AMPHA | Sub Note II | 18-Dec-18 | 2.65% | 2.11% | 1.54% | 101.05 | 4.60% |
| AxessToday | AXLHA | Bond | 20/07/2023 | 4.90% | 4.88% | n/a | 101.10 | 6.82% |
| Australian Unity | AYUHB | Unsub. Bond | 15-Dec-20 | 2.80% | 1.43% | 0.01% | 103.55 | 4.62% |
| Crown | CWNHA | Sub Note | 14-Sep-18 | 5.00% | -0.22% | -3.87% | 101.69 | 6.94% |
| Crown | CWNHB | Sub Note | 23-Jul-21 | 4.00% | 3.19% | -0.17% | 103.45 | 5.82% |
| Bentham IMF | IMFHA | Bond | 30-Jun-19 | 4.20% | 3.27% | 0.12% | 101.64 | 6.11% |
| Nat Aust Bank | NABPE | Sub Note T2 | 20-Jun-23 | 2.20% | 1.48% | -0.13% | 104.00 | 4.03% |
| Peet | PPCHB | Bond | 5-Oct-22 | 3.65% | 4.18% | -0.08% | 102.80 | 6.49% |
| Qube Holdings | QUBHA | Sub Note | 5-Oct-23 | 3.90% | 2.25% | -0.36% | 107.95 | 5.47% |
| Suncorp-Metway | SUNPD | Sub NoteI III | 21-Nov-18 | 2.85% | 1.87% | -0.29% | 100.28 | 4.80% |
| Tatts | TTSHA | Snr. Bond | 5-Jul-19 | 3.10% | 1.86% | 0.89% | 101.80 | 5.00% |
| Villa World | VLWHA | Snr. Bond | 21-Apr-22 | 4.75% | 3.76% | -0.25% | 103.90 | 6.49% |