Australian Corporate Bonds September 2015

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In the first week of September Australia Pacific Airports (Melbourne) issued $250m 7y bonds at Swap + 137bps, quickly followed by Telstra who issued $500m of 7y bonds at Swap + 130bps. Industrial and Commercial Bank of China’s local subsidiary has favoured floating rate notes in the past and issued another $300m 3y FRNs at BBSW + 115bps, as did China Construction Bank’s local subsidiary, but with $400m worth. QBE Insurance issued a bond which qualifies as a hybrid as it contains a Basel III clause and this was reflected in the 400bps margin. But overall September issuance in September was dominated by residential mortgages/asset-backed securities. People’s Choice issued six tranches for a total of $500m, Liberty Finance issued $500m worth in eight tranche deal, Bank of Qld issued six tranche totalling $750m, RedZed issued $250m worth in eight tranches while the biggest of the month was Citibank’s three tranche deal worth $1.25bn, upsized from $750m.

100115 Corp Bonds Spread to ACGB Apr 2020

The usual suspects (Eurofima, Bank Nederlandse Gemeenten, Municipality Finance etc.) were present in the Kangaroo market but the larger-sized issues were from Toronto Dominion who issued $650m worth of 3y FRNs at BBSW + 85 bps, Lloyds Bank’s $150m of 10y bonds at ACGB + 167bps and Auckland Council’s inaugural public issue of $100m of 10.5y bonds ACGB + 79.25bps.

100115 BHP Oct 17 vs ACGB July 17

The iTraxx Series 23 index ended August at just over 108, traded up to 114 before finishing just under 110 when the series ended mid-month. The new Series 24 took over and started at 124 (it being comprised of a slightly different basket of company CDSs from the Series 23), rose steadily to finish the month at 137. The rising cost of insuring against corporate bond defaults was indicative of the market’s concern regarding deteriorating credit conditions and lower global growth. This was particularly prevalent in the resources sector where sharply falling commodity prices increased pressure on company balance sheets.
Refer our tables for a complete list of issuers in September.

100115 iTraxx Australia

 

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AUSTRALIAN CORPORATE BONDS

ISSUERMATURITYCOUPON
(%)
RATINGISSUE
SIZE ($m)
MONTH
HIGH
MONTH
LOW
CLOSING
YIELD
Δ MONTHΔ 2 MONTH
ANZ09 May 166.75AA-7752.422.272.350.080.01
WESTPAC09 May 166.75AA-6252.412.282.330.06-0.01
TRANSURBAN08 Jun 166.75A-2003.253.143.170.020.01
STOCKLAND01 Jul 167.50A-03.032.872.960.090.02
FONTERRA11 Jul 166.25A+02.802.652.720.070.00
TELSTRA02 Aug 167.00A02.532.382.490.110.02
MLBAIRPORT25 Aug 167.00A-03.012.872.920.05-0.04
MIRVAC FIN16 Sep 168.00BBB+03.152.973.080.11-0.01
WESFARMERS04 Nov 166.00A-5002.742.552.670.130.03
WESTPAC18 Nov 167.25AA-16952.452.302.370.07-0.04
CB SUNCORP06 Dec 164.75N/A11002.562.412.480.07-0.03
CB CBA25 Jan 175.75N/A20002.442.282.360.07-0.03
AUSTPOST06 Feb 175.50AA02.752.602.650.04-0.07
CB WESTPAC06 Feb 175.75N/A17002.442.272.340.07-0.05
NAB15 Feb 176.00AA-13002.502.342.430.08-0.02
WESTPAC20 Feb 176.00AA-7252.512.332.430.090.00
CROWN18 Jul 175.75BBB3003.453.293.320.01-0.11
BPCAP05 Sep 174.50A03.072.842.960.09-0.03
BHP18 Oct 173.75A+10003.122.873.030.140.11
TELSTRA15 Nov 174.00A7502.852.612.740.120.02
HSBC16 Nov 174.25AA-2502.832.612.690.05-0.07
WESTPAC24 Jan 184.25AA-2502.712.512.600.06-0.03
CBA25 Jan 184.25AA-7502.712.522.610.06-0.03
NAB07 Mar 187.25AA-7002.722.532.600.05-0.04
ANZ17 Apr 184.25AA-2502.802.582.670.07-0.02
NAB23 May 184.00AA-3252.802.592.680.06-0.04
SYDAIRPORT06 Jul 187.75BBB03.393.183.210.01-0.13
ANZ06 Nov 184.50AA-3002.912.672.780.09-0.01
LENDLEASE13 Nov 185.50BBB-2504.093.793.910.110.01
TELSTRA13 Nov 184.50A5003.092.772.930.160.08
WESTPAC25 Feb 194.50AA-11002.982.732.830.08-0.03
WOOLWORTHS21 Mar 196.00A-5003.683.363.510.130.14
WESFARMERS28 Mar 196.25A-5003.192.973.090.10-0.03
CBA24 Apr 194.25AA-5003.022.772.890.09-0.02
BRISAIR09 Jul 198.00BBB2003.543.313.340.01-0.13
APPLE28 Aug 192.85AA+4003.060.002.842.842.84
STOCKLAND06 Sep 195.50A-1503.673.423.460.01-0.11
DBNGP11 Oct 196.00BBB-04.173.903.950.03-0.12
WESTF RET23 Oct 195.00A03.663.413.490.05-0.06
CFS RETAIL19 Dec 195.00A03.443.243.25-0.02-0.14
CBA05 Feb 207.25AA-2503.232.953.070.09-0.03
WESTPAC11 Feb 207.25AA-3903.242.973.070.07-0.02
WESFARMERS12 Mar 204.75A-3503.463.223.310.08-0.01
QANTAS27 Apr 206.50BB+2505.154.755.000.22-0.04
LENDLEASE13 May 206.00BBB-2254.424.144.230.070.02
MLBAIRPORT04 Jun 205.00A-2253.613.353.400.02-0.11
TELSTRA15 Jul 207.75A5003.433.123.270.160.07
PERAIR23 Jul 206.00BBB03.893.613.660.02-0.09
MIRVAC FIN18 Sep 205.75BBB+2003.903.623.660.01-0.14
BRISAIR21 Oct 206.00BBB3503.863.623.640.00-0.14
AUSTPOST13 Nov 205.00AA03.333.103.13-0.01-0.13
STOCKLAND25 Nov 208.25A-1603.863.633.65-0.02-0.16
UNISYD16 Apr 214.75N/A2003.243.013.02-0.03-0.10
APPLE28 Aug 223.70AA+11503.960.003.723.723.72
TLSAU19 Sep 224.00A5003.993.933.96-0.073.96
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