Short answer: BBSW, the bank bill swap rate, is the benchmark short-term interest rate for the Australian dollar, published by the ASX each business day. Australian floating rate notes pay 3-month BBSW plus a fixed margin, and the rate resets every quarter. 201 of the 360 AUD bonds on Candour Capital's range are floating rate notes. With 3-month BBSW at 4.83% on 2026-10-26, a note paying BBSW + 0.93% (the median senior margin on our range) pays 5.75% a year for the coming quarter.
| Term | Rate |
|---|---|
| 1M | 4.64% |
| 3M | 4.83% |
| 6M | 5.19% |
| Ranking | Floating notes | Lowest | Median | Highest |
|---|---|---|---|---|
| Senior unsecured | 128 | 0.50% | 0.93% | 3.15% |
| Senior secured | 9 | 0.60% | 1.05% | 1.60% |
| Senior non-preferred | 1 | 1.25% | 1.25% | 1.25% |
| Tier 2 | 56 | 1.25% | 1.95% | 6.75% |
| Subordinated | 5 | 2.00% | 2.50% | 3.50% |
| Additional Tier 1 (AT1) | 2 | 2.50% | 2.73% | 2.95% |
Lower-ranked bonds pay wider margins. These are the margins fixed when each note was issued; what a note returns if bought today also depends on its price.
On the first day of each quarter, the coupon is set at that day's 3-month BBSW plus the margin, then paid at the end of the quarter on actual days over 365. If BBSW rises, the next coupon rises; if it falls, the coupon falls.
BBSW follows the Reserve Bank's cash rate and the market's expectations for it. Because the coupon keeps resetting, a floating rate note's price moves much less with interest rates than a fixed rate bond's; it moves mainly with the issuer's credit spread.
General information only. It does not take into account your objectives, financial situation or needs and is not a recommendation. Investment opportunities through Candour Capital are for wholesale and professional investors only. Read the offer documents and seek professional advice before investing.