Trading margins of ASX-listed notes and bonds tended to move higher, with seven rises and two falls. The margin of Villa World’s Bonds (ASX code: VLHHA, +33bps) increased by a noticeable amount but margins of other securities in the sector moved very little in comparison.
At the end of the previous week, Virgin Australia priced USD$425 million (AUD$620 million) worth of November 2024s in US markets. At the beginning of this week, Virgin announced a $150 million new issue of November 2024 bonds, callable in 2022 and with a fixed coupon expected to be at 8.00%.
The current 3-month BBSW rate is around 0.93%. Add the trading margin from the above chart or from the tables to 0.93% 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% | 2.83% | 0.02% | 100.20 | 3.72% |
| Australian Unity | AYUHC | Unsub. Bond | 15-Dec-24 | 2.00% | 1.83% | -0.02% | 101.00 | 2.90% |
| Australian Unity | AYUHD | Unsub. Bond | 15-Dec-26 | 2.15% | 2.08% | 0.04% | 100.70 | 3.06% |
| Crown | CWNHB | Sub Note | 23-Jul-21 | 4.00% | 3.30% | 0.05% | 101.86 | 4.87% |
| Bentham IMF | IMFHA | Bond | 31-Jan-22 | 4.20% | 2.98% | 0.21% | 102.99 | 4.99% |
| Nat Aust Bank | NABPE | Sub Note T2 | 20-Jun-23 | 2.20% | 1.94% | 0.12% | 101.40 | 3.09% |
| Peet | PPCHB | Bond | 5-Oct-22 | 3.65% | 3.10% | -0.04% | 104.60 | 5.35% |
| Qube Holdings | QUBHA | Sub Note | 5-Oct-23 | 3.90% | 2.30% | 0.30% | 106.00 | 4.57% |
| Villa World | VLWHA | Snr. Bond | 21-Apr-22 | 4.75% | 4.84% | 0.33% | 100.00 | 5.68% |