Trading margins of ASX-listed notes and bonds tended to move lower, with five falls and three rises. The margin of Bentham IMF Bonds (ASX code: IMFHA, -49bps) fell by considerably amount for a second consecutive week while other securities’ changes were much more modest.
Australian Unity Notes 3 (ASX code: AYUHC) and Australian Unity Notes 4 (ASX code: AYUHD) began trading. The two series each opened at a small premium to their $100 issue prices and finished that way at the close of the first day.
The current 3-month BBSW rate is around 0.88%. Add the trading margin from the above chart or from the tables to 0.88% 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% | 2.80% | 0.03% | 100.15 | 3.68% |
| Australian Unity | AYUHC | Unsub. Bond | 15-Dec-24 | 2.00% | 1.85% | -0.01% | 100.85 | 2.86% |
| Australian Unity | AYUHD | Unsub. Bond | 15-Dec-26 | 2.15% | 2.04% | 0.01% | 100.90 | 3.01% |
| Crown | CWNHB | Sub Note | 23-Jul-21 | 4.00% | 3.25% | 0.11% | 101.85 | 4.82% |
| Bentham IMF | IMFHA | Bond | 31-Jan-22 | 4.20% | 2.77% | -0.46% | 103.35 | 4.93% |
| Nat Aust Bank | NABPE | Sub Note T2 | 20-Jun-23 | 2.20% | 1.82% | 0.03% | 101.75 | 3.04% |
| Peet | PPCHB | Bond | 5-Oct-22 | 3.65% | 3.14% | -0.02% | 104.41 | 5.31% |
| Qube Holdings | QUBHA | Sub Note | 5-Oct-23 | 3.90% | 2.00% | 0.15% | 107.01 | 4.48% |
| Villa World | VLWHA | Snr. Bond | 21-Apr-22 | 4.75% | 4.51% | -0.30% | 100.00 | 5.59% |