AMP Floating Senior Unsecured

IAM currently has access to a 5 million supply of the AMP Senior bond, rated BBB by S&P, which has been tightly held since its issuance. With only 18 months remaining until its hard maturity in November 2026, this bond is available at a margin of +115, yielding 5% until maturity. The current coupon rate is 7.353%. This represents the widest margin among regional senior bonds, presenting exceptional value.

In comparison, 1-year term deposits are currently around or even below 4%. Therefore, securing approximately 5% for the AMP bond over 18 months offers a favourable return in terms of maturity date, liquidity, and quarterly coupons.