Trading margins of ASX-listed notes and bonds mostly fell. Margins of several securities returned to moving within fairly normal weekly bounds but others still exhibited excessively large week-on-week changes. Australian Unity Bonds Series D (ASX code: AYUHD, +104bps) was the only security in the sector whose margin increased by a large amount (ignoring its short-dated sibling, AYUHB.
The current 3-month BBSW rate is around 0.43%. Add the trading margin from the above chart or from the tables to 0.43% 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% | 6.85% | 1.51% | 98.00 | 3.34% |
| Crown | CWNHB | Sub. Note | 23-Jul-21 | 4.00% | 19.72% | -1.38% | 83.50 | 5.34% |
| Bentham IMF | IMFHA | Bond | 31-Jan-22 | 4.20% | 11.35% | -1.76% | 90.10 | 5.22% |
| Villa World | VLWHA | Snr. Bond | 21-Apr-22 | 4.75% | 5.39% | 0.02% | 100.00 | 5.25% |
| Peet | PPCHB | Bond | 5-Oct-22 | 3.65% | 5.60% | -0.60% | 97.90 | 5.20% |
| Nat. Aust. Bank | NABPE | Sub. Note Tier 2 | 20-Jun-23 | 2.20% | 3.86% | -1.02% | 95.00 | 2.79% |
| Qube Holdings | QUBHA | Sub. Note | 5-Oct-23 | 3.90% | 6.68% | -0.05% | 92.00 | 4.72% |
| Australian Unity | AYUHC | Bond Series C | 15-Dec-24 | 2.00% | 3.38% | -0.12% | 95.00 | 2.59% |
| Australian Unity | AYUHD | Bond Series D | 15-Dec-26 | 2.15% | 5.21% | 1.04% | 85.00 | 3.08% |
** Clean running yield.