Trading margins of ASX-listed notes and bonds mostly moved higher again but, this week the changes were larger. Australian Unity bonds (ASX code: AYUHA, +91bps) was the obvious standout but Crown’s series 2 Notes (ASX code: CWNHB, -52bps) and Bentham IMF bonds (ASX code: IMFHA) also moved substantially.
The current 3-month BBSW rate is around 1.55%. Add the trading margin from the above chart or from the tables to 1.55% 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** |
|---|---|---|---|---|---|---|---|---|
| AGL | AGLHA | Sub Note | 8-Jun-19 | 3.80% | 3.25% | 0.79% | 100.93 | 5.35% |
| Australian Unity | AYUHB | Unsub. Bond | 15-Dec-20 | 2.80% | 2.25% | 0.91% | 101.15 | 4.31% |
| Crown | CWNHB | Sub Note | 23-Jul-21 | 4.00% | 3.45% | -0.52% | 102.06 | 5.48% |
| Bentham IMF | IMFHA | Bond | 31-Jan-22 | 4.20% | 3.83% | -0.33% | 101.50 | 5.69% |
| Nat Aust Bank | NABPE | Sub Note T2 | 20-Jun-23 | 2.20% | 1.63% | 0.02% | 102.79 | 3.67% |
| Peet | PPCHB | Bond | 5-Oct-22 | 3.65% | 4.44% | 0.04% | 101.35 | 6.15% |
| Qube Holdings | QUBHA | Sub Note | 5-Oct-23 | 3.90% | 2.28% | 0.13% | 106.70 | 5.13% |
| Tatts | TTSHA | Snr. Bond | 5-Jul-19 | 3.10% | 3.35% | 0.05% | 100.35 | 4.65% |
| Villa World | VLWHA | Snr. Bond | 21-Apr-22 | 4.75% | 4.62% | 0.15% | 100.75 | 6.26% |
** Clean running yield.