Trading margins of ASX-listed notes and bonds generally increased. Excluding short-dated securities, the largest changes came from Australian Unity Notes (AYUHB, +40bps), which reversed the previous week’s move, and Villa World Bonds (ASX code: VLWHA, +38bps), which continued the yo-yo like behaviour of the last few weeks.
IMFHA will seek to extend the maturity date from June 2019 to December 2022 with a first call date of January 2022 and a 1.0% step-up if not called on that date. If the amendment is accepted by bondholders, a $2.37 one-off payment will be made to holders. IMF will also offer holders on record as at 23 October 2018 the option of having some or all of their bonds redeemed on 6 December 2018.
$39 million new IMF Bonds were issued on the day of the announcement, conditional on the successful amendment of the terms.
Trading in Axesstoday Notes (ASX code: AXLHA) is still suspended. The notes were issued in July. Axesstoday is seeking waivers and amendments from noteholders of its Subordinated Notes and Series 2 Notes as well as amendments on its simple corporate bonds. The suspension will last until “the earlier of the company making an announcement or 30 November 2018.”
Suncorp will redeem all its ASX-listed subordinated notes (ASX code: SUNPD) on the optional redemption date of 22 November 2018 (not shown in the chart above).
The current 3 month BBSW rate is around 1.94%. Add the trading margin from the above chart or from the tables to 1.94% 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% | 2.02% | 0.30% | 102.00 | 5.65% |
| AMP | AMPHA | Sub Note II | 18-Dec-18 | 2.65% | 4.14% | -0.37% | 100.50 | 4.57% |
| AxessToday | AXLHA | Bond | 20/07/2023 | 4.90% | 5.20% | n/a | 100.00 | 6.85% |
| Australian Unity | AYUHB | Unsub. Bond | 15-Dec-20 | 2.80% | 1.18% | 0.40% | 103.60 | 4.56% |
| Crown | CWNHB | Sub Note | 23-Jul-21 | 4.00% | 3.37% | 0.02% | 102.60 | 5.81% |
| Bentham IMF | IMFHA | Bond | 30-Jun-19 | 4.20% | 1.20% | -0.36% | 102.50 | 5.99% |
| Nat Aust Bank | NABPE | Sub Note T2 | 20-Jun-23 | 2.20% | 1.65% | 0.14% | 103.00 | 4.01% |
| Peet | PPCHB | Bond | 5-Oct-22 | 3.65% | 3.62% | 0.04% | 104.25 | 6.33% |
| Qube Holdings | QUBHA | Sub Note | 5-Oct-23 | 3.90% | 2.39% | 0.04% | 106.90 | 5.46% |
| Suncorp-Metway | SUNPD | Sub NoteI III | 21-Nov-18 | 2.85% | 9.27% | 4.92% | 100.82 | 4.77% |
| Tatts | TTSHA | Snr. Bond | 5-Jul-19 | 3.10% | 1.05% | 1.05% | 101.85 | 4.94% |
| Villa World | VLWHA | Snr. Bond | 21-Apr-22 | 4.75% | 3.75% | 0.38% | 103.50 | 6.46% |