Trading margins of ASX-listed notes and bonds increased on average as the number of securities with higher trading margins outweighed those with lower trading margins. The median trading margin increased from 1.86% to 2.07% as AMP Notes (ASX code: AMPHA, +107bps) once again was sold off and Suncorp Notes (ASX code: SUNPD, +96bps) reversed the previous week’s movement. Bentham IMF bonds (ASX code: IMFHA, -140bps) gave back most of the previous week’s increase while Crown Notes (ASX code: CWNHA, -80bps) found favour with investors despite losing favour with gaming regulators.
The current 3 month BBSW rate is around 2.05%. Add the trading margin from the above chart or from the tables to 2.05% 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% | 1.16% | -0.21% | 103.70 | 5.69% |
| AMP | AMPHA | Sub Note II | 18-Dec-18 | 2.65% | 2.85% | 1.07% | 100.40 | 4.71% |
| Australian Unity | AYUHB | Unsub. Bond | 15-Dec-20 | 2.80% | 1.20% | 0.05% | 104.13 | 4.67% |
| Crown | CWNHA | Sub Note | 14-Sep-18 | 5.00% | 2.07% | -0.80% | 102.00 | 6.97% |
| Crown | CWNHB | Sub Note | 23-Jul-21 | 4.00% | 3.84% | 0.13% | 101.40 | 6.01% |
| Bentham IMF | IMFHA | Bond | 30-Jun-19 | 4.20% | 2.80% | -1.40% | 101.95 | 6.15% |
| Nat Aust Bank | NABPE | Sub Note T2 | 20-Jun-23 | 2.20% | 1.70% | 0.05% | 102.85 | 4.15% |
| Peet | PPCHB | Bond | 5-Oct-22 | 3.65% | 4.01% | 0.27% | 103.00 | 6.53% |
| Qube Holdings | QUBHA | Sub Note | 5-Oct-23 | 3.90% | 2.71% | -0.03% | 105.75 | 5.65% |
| Suncorp-Metway | SUNPD | Sub NoteI T2 | 21-Nov-18 | 2.85% | 1.72% | 0.96% | 101.48 | 4.87% |
| Tatts | TTSHA | Snr. Bond | 5-Jul-19 | 3.10% | 1.23% | -0.42% | 102.50 | 5.04% |
| Villa World | VLWHA | Snr. Bond | 21-Apr-22 | 4.75% | 3.99% | -0.07% | 102.85 | 6.62% |
| Westpac | WBCHB | Sub Note T2 | 22-Aug-18 | 2.30% | 2.04% | 0.18% | 100.81 | 4.35% |