Summary: Downwards bias to trading margins over week; some small increases.
Trading margins of ASX-listed notes and bonds tended to have downward bias, although several securities had small increases. The trading margin of Crown Notes 2 (ASX: CWNHB, -59bps) pulled back after two weeks of large increases while the margin of Peet Bonds (ASX code: PPCHB, -59bps) coincidentally fell by the same amount.
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% | 2.14% | 0.49% | 100.35 | 2.89% |
| Crown | CWNHB | Sub. Note | 23-Jul-21 | 4.00% | 11.17% | -0.59% | 94.10 | 4.38% |
| Bentham IMF | IMFHA | Bond | 31-Jan-22 | 4.20% | 5.45% | -0.25% | 98.50 | 4.38% |
| Villa World | VLWHA | Snr. Bond | 21-Apr-22 | 4.75% | 6.02% | 0.04% | 100.00 | 4.95% |
| Peet | PPCHB | Bond | 5-Oct-22 | 3.65% | 5.85% | -0.59% | 98.00 | 4.86% |
| Nat. Aust. Bank | NABPE | Sub. Note Tier 2 | 20-Jun-23 | 2.20% | 2.30% | 0.02% | 100.00 | 2.31% |
| Qube Holdings | QUBHA | Sub. Note | 5-Oct-23 | 3.90% | 3.14% | 0.02% | 102.50 | 3.91% |
| Australian Unity | AYUHC | Bond Series C | 15-Dec-24 | 2.00% | 2.72% | 0.08% | 97.25 | 2.16% |
| Australian Unity | AYUHD | Bond Series D | 15-Dec-26 | 2.15% | 2.65% | -0.16% | 97.40 | 2.31% |
** Clean running yield.