Summary: Trading margin movements generally higher; margins of Peet Bonds, Qube Notes move noticeably.
Trading margins of ASX-listed notes and bonds tended to increase this week, although there was one obvious exception. The trading margin of Peet Bond’s (ASX code: PPCHB, -66bps) experienced another large fall while Qube Notes (ASX code: QUBHA, +73bps) reversed all plus a bit more of its 50bps fall in the previous week.
Australian Unity’s Series B Bonds (ASX code: AYUHB) ceased trading on 3 December and they will be redeemed on 15 December.
The current 3-month BBSW rate is just above zero. 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** |
|---|---|---|---|---|---|---|---|---|
| Crown | CWNHB | Sub. Note | 23-Jul-21 | 4.00% | 14.66% | 0.08% | 93.84 | 4.28% |
| Omni Bridgeway | OBLHA | Bond | 31-Jan-22 | 4.20% | 5.13% | -0.18% | 99.70 | 4.26% |
| Peet | PPCHB | Bond | 5-Oct-22 | 3.65% | 5.47% | -0.66% | 99.50 | 4.73% |
| Nat. Aust. Bank | NABPE | Sub. Note Tier 2 | 20-Jun-23 | 2.20% | 2.15% | 0.11% | 100.62 | 2.22% |
| Qube Holdings | QUBHA | Sub. Note | 5-Oct-23 | 3.90% | 3.03% | 0.73% | 103.01 | 3.83% |
| Australian Unity | AYUHC | Bond Series C | 15-Dec-24 | 2.00% | 2.36% | 0.01% | 99.00 | 2.05% |
| Australian Unity | AYUHD | Bond Series D | 15-Dec-26 | 2.15% | 3.40% | 0.11% | 94.00 | 2.32% |