29 Aug – 2 Sep 2016

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Corporate risk pricing has maintained its recent trend in this latest week. Corporate spreads and credit default prices both indicate investors are more comfortable with corporate debt than they have been for some time. The credit default swap index iTraxx moved from 100.5 to 98.0 while corporate spreads were steady on average. However, the stability of spreads on average hid some largish moves; the spread on Lend Lease November 2018s and May 2020s each narrowed by 8bps and 15 bps respectively.

Issuance was exceptionally light, for both domestic issuers and issuers in the Kangaroo market, with less than $1.5 billion worth of bonds issued by both types of issuers over the week. Additionally, there was not one indigenous corporate which issued bonds this week.

In the local market Rabobank (Australia) issued $40 million May 2025s at Swap + 121bps, China Construction Bank (Sydney Branch) issued $500 million September 2019s at 3m BBSW + 105bps, BNP Paribas (Australia) issued $250 million 2027s at Swap +278bps and Nissan Financial Services (Australia) issued $300 million September 2019s at Swap +100bps.

In the Kangaroo market, there was just one issue. Nederlandse Waterschapsbank issued $55 million September 2026s at ACGB + 85.25bps.

All these and other bond issues can be found via the link below.

Click here for new debt issues

160903 corp 160903itraxx

AUSTRALIAN CORPORATE BONDS

ISSUERMATURITYCOUPON (%)RATINGWEEK
HIGH
WEEK
LOW
CLOSING
YIELD
Δ WEEKΔ MONTH
Mirvac Finance16-Sep-168.00BBB+2.302.292.29-0.02-0.26
Wesfarmers4-Nov-166.00A-2.412.382.38-0.04-0.20
Westpac18-Nov-167.25AA-2.001.992.000.00-0.09
Suncorp (CB)6-Dec-164.75n/a2.082.052.05-0.03-0.19
CBA (CB)25-Jan-175.75n/a1.981.961.970.00-0.11
Australia Post6-Feb-175.50AA2.372.352.370.01-0.09
Westpac (CB)6-Feb-175.75n/a2.002.002.000.00-0.10
NAB15-Feb-176.00AA-2.011.971.97-0.04-0.15
Westpac20-Feb-176.00AA-2.031.971.97-0.05-0.17
Crown18-Jul-175.75BBB2.922.832.83-0.08-0.21
BP Capital5-Sep-174.50A2.612.582.600.00-0.12
BHP18-Oct-173.75A+2.682.542.54-0.12-0.27
Telstra15-Nov-174.00A2.412.362.36-0.04-0.16
HSBC16-Nov-174.25AA-2.342.322.340.01-0.09
Westpac24-Jan-184.25AA-2.192.162.16-0.02-0.14
CBA25-Jan-184.25AA-2.182.162.16-0.02-0.14
NAB7-Mar-187.25AA-2.202.172.17-0.02-0.12
ANZ17-Apr-184.25AA-2.232.192.20-0.02-0.15
NAB23-May-184.00AA-2.242.202.21-0.01-0.13
Sydney Airport6-Jul-187.75BBB2.752.672.69-0.05-0.21
ANZ6-Nov-184.50AA-2.342.282.28-0.04-0.19
Lendlease13-Nov-185.50BBB-3.253.153.15-0.08-0.24
Telstra13-Nov-184.50A2.532.492.49-0.03-0.15
Westpac25-Feb-194.50AA-2.362.322.34-0.01-0.16
Woolworths21-Mar-196.00A-3.153.083.08-0.06-0.20
Wesfarmers28-Mar-196.25A-2.802.732.73-0.06-0.18
CBA24-Apr-194.25AA-2.412.352.35-0.05-0.19
Bris Airport9-Jul-198.00BBB3.053.013.01-0.02-0.14
Apple Inc28-Aug-192.85AA+2.282.242.280.01-0.11
Stockland6-Sep-195.50A-2.962.772.77-0.17-0.28
DBNGP11-Oct-196.00BBB-3.623.583.610.01-0.11
Westfield Retail23-Oct-195.00A2.752.712.740.01-0.12
CBA5-Feb-207.25AA-2.502.462.47-0.02-0.15
Westpac11-Feb-207.25AA-2.492.442.47-0.01-0.14
Wesfarmers12-Mar-204.75A-2.982.902.90-0.07-0.19
Qantas27-Apr-206.50BB+3.963.913.950.01-0.12
Lendlease13-May-206.00BBB-3.723.623.62-0.08-0.25
Melb Airport4-Jun-205.00A-2.822.762.79-0.01-0.13
Telstra15-Jul-207.75A2.672.612.61-0.05-0.15
Perth Airport23-Jul-206.00BBB3.423.373.410.01-0.08
Mirvac Finance18-Sep-205.75BBB+3.273.153.15-0.10-0.26
Bris Airport21-Oct-206.00BBB3.273.203.20-0.05-0.16
Australia Post13-Nov-205.00AA2.622.572.620.01-0.08
Stockland25-Nov-208.25A-2.972.922.960.01-0.14
Uni Sydney16-Apr-214.75Aa12.422.372.39-0.01-0.10
Apple Inc28-Aug-223.70AA+2.672.612.64-0.02-0.12
Melb Airport15-Sep-224.00A-3.143.053.09-0.02-0.15
Telstra16-Sep-224.00A2.832.772.810.00-0.12
CBA27-May-244.75AA-2.652.61
Wells Fargo27-Aug-244.75A+3.313.243.310.03-0.04
Univesity of Sydney28-Aug-253.75Aa12.832.772.810.00-0.07