Trading margins of a majority of ASX-listed notes and bonds fell for a fifth consecutive week, with five falls and three rises. The increases were small but the falls were large as investors charged in.
Australian Unity Bonds (ASX code: AYUHB, -100bps) has a large bid-offer spread and so its margins tend to jump around. Perhaps the same can be said for Bentham IMF Bonds (ASX code: IMFHA, -96bps) and Peet Bonds (ASX code: PPCHB, -52bps).
And then there were eight. Tatts Bonds (ASX code: TTSHA) are due to mature on 5 July 2019 and the securities ceased trading on the ASX on 24 June.
The current 3-month BBSW rate is around 1.20%. Add the trading margin from the above chart or from the tables to 1.20% 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** |
|---|---|---|---|---|---|---|---|---|
| Australian Unity | AYUHB | Unsub. Bond | 15-Dec-20 | 2.80% | 1.22% | -1.00% | 103.20 | 3.91% |
| Crown | CWNHB | Sub Note | 23-Jul-21 | 4.00% | 2.97% | 0.02% | 102.31 | 5.09% |
| Bentham IMF | IMFHA | Bond | 31-Jan-22 | 4.20% | 3.06% | -0.96% | 102.65 | 5.25% |
| Nat Aust Bank | NABPE | Sub Note T2 | 20-Jun-23 | 2.20% | 1.79% | 0.03% | 101.74 | 3.34% |
| Peet | PPCHB | Bond | 5-Oct-22 | 3.65% | 2.67% | -0.52% | 105.75 | 5.52% |
| Qube Holdings | QUBHA | Sub Note | 5-Oct-23 | 3.90% | 2.01% | 0.04% | 107.05 | 4.76% |
| Tatts | TTSHA | Snr. Bond | 5-Jul-19 | 3.10% | -45.72% | -49.37% | 101.20 | 4.24% |
| Villa World | VLWHA | Snr. Bond | 21-Apr-22 | 4.75% | 4.21% | -0.07% | 102.70 | 5.86% |