4 June – 8 June 2018

The average trading margin of ASX-listed notes and bonds moved higher again this week. Normally, securities with 2018 maturities would be the main culprits but in this case, the largest movements came from other securities. AGL Notes (ASX code: AGLHA, +62bps), Crown Notes 2 (ASX code: CWNHA, +57bps) and Australian Unity Bonds (ASX code: AYUHB, +46bps) all have maturities in 2019 or later.

The current 3 month BBSW rate is around 2.05%. Add the trading margin from the above chart or from the tables to 2.05% 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%	2.37%	0.62%	101.45	5.77%
AMP	AMPHA	Sub Note II	18-Dec-18	2.65%	3.18%	-0.35%	99.63	4.71%
Australian Unity	AYUHB	Unsub. Bond	15-Dec-20	2.80%	2.11%	0.46%	102.40	4.77%
Crown	CWNHA	Sub Note	14-Sep-18	5.00%	3.79%	-0.24%	100.24	7.03%
Crown	CWNHB	Sub Note	23-Jul-21	4.00%	4.02%	0.57%	100.10	6.04%
Bentham IMF	IMFHA	Bond	30-Jun-19	4.20%	3.32%	0.25%	102.00	6.19%
Nat Aust Bank	NABPE	Sub Note T2	20-Jun-23	2.20%	1.83%	-0.01%	101.65	4.18%
Peet	PPCHB	Bond	5-Oct-22	3.65%	4.46%	0.27%	102.20	6.63%
Qube Holdings	QUBHA	Sub Note	5-Oct-23	3.90%	2.75%	0.00%	106.20	5.66%
Suncorp-Metway	SUNPD	Sub NoteI T2	21-Nov-18	2.85%	2.26%	0.16%	100.50	4.89%
Tatts	TTSHA	Snr. Bond	5-Jul-19	3.10%	1.90%	0.35%	102.20	5.08%
Villa World	VLWHA	Snr. Bond	21-Apr-22	4.75%	4.00%	0.18%	103.55	6.62%
Westpac	WBCHB	Sub Note T2	22-Aug-18	2.30%	3.00%	0.26%	100.05	4.36%