Trading margins of ASX-listed notes and bonds jumped significantly on the back of a few large moves. The median trading margin increased from 1.70% to 2.20% on the back of higher trading margins from APT Pipelines Notes (AQHHA, -154bps) which are to be redeemed later this month, Westpac Notes 2 (ASX code: WBCHA, +65bps) and Crown Notes 1 (ASX code: CWNHA, +55bps). Note how all these securities are close to or are approaching their respective maturity dates.
The current 3 month BBSW rate is around 1.91%. Add the trading margin from the above chart or from the tables to 1.91% 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% | 2.20% | 0.50% | 102.01 | 5.59% |
| AMP | AMPHA | Sub Note II | 18-Dec-18 | 2.65% | 1.23% | 0.26% | 101.00 | 4.50% |
| APT Pipelines | AQHHA | Sub Note | 31-Mar-18 | 4.50% | 6.20% | 1.54% | 101.03 | 6.41% |
| Australian Unity | AYUHB | Unsub. Bond | 15-Dec-20 | 2.80% | 1.33% | -0.07% | 104.50 | 4.53% |
| Crown | CWNHA | Sub Note | 14-Sep-18 | 5.00% | 3.84% | 0.55% | 100.55 | 6.86% |
| Crown | CWNHB | Sub Note | 23-Jul-21 | 4.00% | 3.49% | 0.03% | 101.60 | 5.81% |
| Bentham IMF | IMFHA | Bond | 30-Jun-19 | 4.20% | 2.69% | -0.05% | 102.95 | 5.99% |
| Nat Aust Bank | NABPE | Sub Note T2 | 20-Jun-23 | 2.20% | 1.57% | 0.00% | 102.95 | 3.98% |
| Qube Holdings | QUBHA | Sub Note | 5-Oct-23 | 3.90% | 3.72% | 0.02% | 105.55 | 5.55% |
| Suncorp-Metway | SUNPD | Sub NoteI T2 | 21-Nov-18 | 2.85% | 0.90% | -0.46% | 101.59 | 4.69% |
| Tatts | TTSHA | Snr. Bond | 5-Jul-19 | 3.10% | 0.69% | -0.34% | 104.00 | 4.85% |
| Villa World | VLWHA | Snr. Bond | 21-Apr-22 | 4.75% | 4.01% | -0.07% | 103.60 | 6.47% |
| Westpac | WBCHB | Sub Note T2 | 22-Aug-18 | 2.30% | 1.50% | 0.65% | 100.55 | 4.19% |