Trading margins of ASX-listed notes and bonds tended to move lower, with five falls and four rises. The margin of Australian Unity Series C Bonds (ASX code: AYUHC, -54bps) fell by quite a bit as they were bid up while the Bentham IMF Bonds (ASX code: IMFHA, +37bps) went noticeably in the other direction. Margins of other securities in the sector moved very little in comparison.
Virgin has confirmed its $150 million new issue of November 2024 bonds, callable in 2022 will have an 8% coupon. Trading will begin in late November.
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 | Bond Series B | 15-Dec-20 | 2.80% | 2.90% | 0.07% | 100.20 | 3.74% |
| Australian Unity | AYUHC | Bond Series C | 15-Dec-24 | 2.00% | 1.29% | -0.54% | 103.50 | 2.84% |
| Australian Unity | AYUHD | Bond Series D | 15-Dec-26 | 2.15% | 2.21% | 0.13% | 100.00 | 3.09% |
| Crown | CWNHB | Sub. Note | 23-Jul-21 | 4.00% | 3.11% | -0.19% | 102.25 | 4.86% |
| Bentham IMF | IMFHA | Bond | 31-Jan-22 | 4.20% | 3.36% | 0.37% | 102.30 | 5.04% |
| Nat. Aust. Bank | NABPE | Sub. Note Tier 2 | 20-Jun-23 | 2.20% | 1.92% | -0.02% | 101.52 | 3.10% |
| Peet | PPCHB | Bond | 5-Oct-22 | 3.65% | 3.06% | -0.04% | 104.80 | 5.35% |
| Qube Holdings | QUBHA | Sub. Note | 5-Oct-23 | 3.90% | 2.12% | -0.19% | 106.74 | 4.55% |
| Villa World | VLWHA | Snr. Bond | 21-Apr-22 | 4.75% | 4.86% | 0.02% | 100.00 | 5.69% |