Summary: Trading margins generally higher; Peet’s margin drops back.
With the exception of short-dated securities, trading margins of ASX-listed notes and bonds generally rose this week. The trading margin of Peet Bonds (ASX code: PPCHB, -52bps) was one of a couple of exceptions. Its margin had run up significantly in the second week of October and its movement during this latest week reversed some of that. Other movements over the week were quite modest.
Villa World Bonds (ASX code: VLWHA) were redeemed on 30 October following Villa World’s takeover by AVID Property Group.
The current 3-month BBSW rate is just over 0.05%. 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% | -1.26% | -4.92% | 100.65 | 2.84% |
| Crown | CWNHB | Sub. Note | 23-Jul-21 | 4.00% | 13.68% | -1.57% | 94.20 | 4.33% |
| Omni Bridgeway | OBLHA | Bond | 31-Jan-22 | 4.20% | 4.14% | 0.08% | 100.39 | 4.25% |
| Peet | PPCHB | Bond | 5-Oct-22 | 3.65% | 6.04% | -0.52% | 98.00 | 4.82% |
| Nat. Aust. Bank | NABPE | Sub. Note Tier 2 | 20-Jun-23 | 2.20% | 2.04% | 0.06% | 100.71 | 2.25% |
| Qube Holdings | QUBHA | Sub. Note | 5-Oct-23 | 3.90% | 2.20% | -0.17% | 104.98 | 3.78% |
| Australian Unity | AYUHC | Bond Series C | 15-Dec-24 | 2.00% | 2.57% | 0.28% | 98.00 | 2.10% |
| Australian Unity | AYUHD | Bond Series D | 15-Dec-26 | 2.15% | 2.94% | 0.01% | 96.00 | 2.30% |