Summary: Trading margin movements mixed; margins of Peet Bonds, Qube Notes both fall noticeably.
Trading margins of ASX-listed notes and bonds moved in no particular direction this week, although two securities’ margins did fall noticeably. The trading margin of Peet Bond’s (ASX code: PPCHB, -57bps) and Qube Notes (ASX code: QUBHA, -50bps) both experienced large falls over the week. Other movements over the week were quite modest except for some short-dated securities.
Australian Unity will be making an offer of “mutual capital instruments” shortly with the ASX code AYUPA. Australian Unity is seeking to raise $100 million (details to follow). $70 million worth of Australian Unity’s Series B Bonds (ASX code: AYUHB) will mature on 15 December.
The current 3-month BBSW rate is just above zero. 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% | -0.23% | -5.90% | 100.50 | 2.82% |
| Crown | CWNHB | Sub. Note | 23-Jul-21 | 4.00% | 14.59% | 2.14% | 94.65 | 4.28% |
| Omni Bridgeway | OBLHA | Bond | 31-Jan-22 | 4.20% | 5.32% | -0.04% | 99.40 | 4.27% |
| Peet | PPCHB | Bond | 5-Oct-22 | 3.65% | 6.13% | -0.57% | 98.30 | 4.78% |
| Nat. Aust. Bank | NABPE | Sub. Note Tier 2 | 20-Jun-23 | 2.20% | 2.04% | 0.05% | 100.88 | 2.21% |
| Qube Holdings | QUBHA | Sub. Note | 5-Oct-23 | 3.90% | 2.30% | -0.50% | 104.90 | 3.76% |
| Australian Unity | AYUHC | Bond Series C | 15-Dec-24 | 2.00% | 2.35% | 0.01% | 99.00 | 2.05% |
| Australian Unity | AYUHD | Bond Series D | 15-Dec-26 | 2.15% | 3.28% | 0.13% | 94.50 | 2.30% |