Trading margins of ASX-listed notes and bonds increased on average for the fourth week in a row. The increase was primarily driven by a fall in the price of Crown’s series 1 Notes (ASX code: CWNHA) and a subsequent increase in its yield and trading margin (+169bps). These notes mature in September.
There was also a minor sell-off in the listed notes of AMP (ASX code: AMPHA) and the trading margin gained +72bps. As with Crown’s notes, the AMP Notes mature later this year and a small price change has a large effect on security’s yield.
The current 3 month BBSW rate is around 1.93%. Add the trading margin from the above chart or from the tables to 1.93% 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% | 2.04% | 0.21% | 102.90 | 5.63% |
| AMP | AMPHA | Sub Note II | 18-Dec-18 | 2.65% | 3.51% | 0.72% | 100.20 | 4.61% |
| Australian Unity | AYUHB | Unsub. Bond | 15-Dec-20 | 2.80% | 1.39% | 0.21% | 103.80 | 4.58% |
| Crown | CWNHA | Sub Note | 14-Sep-18 | 5.00% | 4.06% | 1.69% | 101.46 | 6.92% |
| Crown | CWNHB | Sub Note | 23-Jul-21 | 4.00% | 3.82% | 0.14% | 101.66 | 5.90% |
| Bentham IMF | IMFHA | Bond | 30-Jun-19 | 4.20% | 3.28% | 0.09% | 101.60 | 6.07% |
| Nat Aust Bank | NABPE | Sub Note T2 | 20-Jun-23 | 2.20% | 1.65% | 0.09% | 103.25 | 4.03% |
| Peet | PPCHB | Bond | 5-Oct-22 | 3.65% | 3.84% | 0.09% | 103.80 | 6.39% |
| Qube Holdings | QUBHA | Sub Note | 5-Oct-23 | 3.90% | 2.60% | -0.11% | 106.45 | 5.51% |
| Suncorp-Metway | SUNPD | Sub NoteI T2 | 21-Nov-18 | 2.85% | 1.69% | -0.11% | 100.50 | 4.76% |
| Tatts | TTSHA | Snr. Bond | 5-Jul-19 | 3.10% | 1.03% | -0.55% | 102.85 | 4.92% |
| Villa World | VLWHA | Snr. Bond | 21-Apr-22 | 4.75% | 3.83% | 0.00% | 103.60 | 6.48% |
| Westpac | WBCHB | Sub Note T2 | 22-Aug-18 | 2.30% | 1.91% | 0.09% | 100.00 | 4.23% |