The majority of trading margins of ASX-listed notes and bonds fell this week, some quite noticeably. Bentham IMF (ASX code: IMFHA, -73bps) continued its volatile path of recent weeks, as did Peet Bonds (ASX code: PPCHB, -70bps).
On the other side, a much higher trading margin of Australian Unity Bonds (ASX code: AYUHB, +130bps) looks as if it was the result of a couple of impatient sellers who “hit the bid”. Perhaps they wish to finance the new issue of 2024 and 2026 bonds .
The current 3-month BBSW rate is around 0.92%. Add the trading margin from the above chart or from the tables to 0.92% 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% | 2.65% | 1.30% | 101.01 | 3.74% |
| Crown | CWNHB | Sub Note | 23-Jul-21 | 4.00% | 2.98% | 0.05% | 102.00 | 4.86% |
| Bentham IMF | IMFHA | Bond | 31-Jan-22 | 4.20% | 2.87% | -0.73% | 102.81 | 5.00% |
| Nat Aust Bank | NABPE | Sub Note T2 | 20-Jun-23 | 2.20% | 1.53% | -0.16% | 102.55 | 3.07% |
| Peet | PPCHB | Bond | 5-Oct-22 | 3.65% | 3.16% | -0.70% | 104.00 | 5.38% |
| Qube Holdings | QUBHA | Sub Note | 5-Oct-23 | 3.90% | 1.67% | -0.10% | 107.95 | 4.49% |
| Villa World | VLWHA | Snr. Bond | 21-Apr-22 | 4.75% | 4.21% | -0.44% | 102.50 | 5.62% |