Corporate

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14 Aug – 18 Aug 2017

Corporate bond spreads were about 0.5bp lower on average with the number of individually wider spreads barely outweighed by those with tighter spreads. Spreads of most corporate bonds moved very little but one of the few which did was the spread on Apple’s June 2026s (-7bps). Swap-to-bond spreads were lower and the iTraxx Australia Series 27 index fell back from 80.3 to 77.4.

Primary market activity by local issuers was lower at $2.4 billion as compared to $4.1 billion (after corrections and additions) in the week before. ETSA Utilities made a return to the local market after several years and raised $550 million via two tranches; the floating rate tranche comprised $175 million 5 year FRNs while the fixed-rate tranche comprised 7 year notes worth $375 million. Regular issuer Bank of Tokyo-Mitsubishi’s Sydney branch also went for the two tranche fixed / floating approach except their tranches comprised $150 million August 2020s at Swap + 76bps and $400 million August 2020s at BBSW + 76bps. Optus Finance issued $400 million 5 year bonds at Swap + 97bps and Suncorp-Metway Bank issued $150 million covered August 2026s at Swap + 108bps.

In the asset-backed securities market, Bendigo and Adelaide Bank completed its second RMBS transaction for 2017. Torrens 2017-2 trust issued $750 million worth in six tranches with the largest $690 million tranche sold at 1m BBSW + 103bps.

It was another week of relatively little in the way of primary market transaction in the Kangaroo market. KfW Bankengruppe tapped its September 2026 line for $100 million at ACGB + 55bps and Nederlandse Waterschapsbank tapped its July 2027s for $15 million at ACGB + 75bps.

In rating news, Stockland Group has been assigned an A3 rating by Moody’s, in line with the company’s A- S&P rating. Origin Energy’s outlook was revised to stable and its Baa3 rating affirmed.

Interested readers can find more details as well as other bond transactions in our tables via the link below.

Click here for new debt issues

AUSTRALIAN CORPORATE BONDS

ISSUERMATURITYCOUPON (%)RATINGWEEK
HIGH
WEEK
LOW
CLOSING
YIELD
Δ WEEKΔ MONTH
BP Capital5-Sep-174.50A2.031.982.02-0.01-0.08
BHP18-Oct-173.75A+1.951.931.94-0.03-0.08
Telstra15-Nov-174.00A2.052.032.03-0.01-0.07
HSBC16-Nov-174.25AA-1.951.951.950.05-0.13
Westpac24-Jan-184.25AA-1.901.901.900.00-0.11
CBA25-Jan-184.25AA-1.901.901.900.00-0.11
NAB7-Mar-187.25AA-1.941.941.940.02-0.07
ANZ17-Apr-184.25AA-1.971.971.970.01-0.06
NAB23-May-184.00AA-1.991.981.990.03-0.06
Sydney Airport6-Jul-187.75BBB2.342.322.330.01-0.06
ANZ6-Nov-184.50AA-2.122.112.110.03-0.11
Lendlease13-Nov-185.50BBB-2.752.732.740.04-0.08
Telstra13-Nov-184.50A2.342.322.320.04-0.06
Westpac25-Feb-194.50AA-2.212.202.200.01-0.13
Woolworths21-Mar-196.00A-2.602.582.590.02-0.06
Wesfarmers28-Mar-196.25A-2.562.542.550.02-0.07
CBA24-Apr-194.25AA-2.292.272.270.04-0.11
Brisbane Airport9-Jul-198.00BBB2.922.912.910.01-0.05
Apple Inc28-Aug-192.85AA+2.372.352.360.02-0.03
Stockland6-Sep-195.50A-2.772.752.760.03-0.05
DBNGP11-Oct-196.00BBB-3.313.293.290.000.02
Westfield Retail23-Oct-195.00A2.772.752.760.02-0.05
CBA5-Feb-207.25AA-2.512.482.490.02-0.10
Westpac11-Feb-207.25AA-2.512.482.490.02-0.11
Wesfarmers12-Mar-204.75A-2.762.732.740.02-0.10
Qantas27-Apr-206.50BB+3.393.373.370.00-0.10
Lendlease13-May-206.00BBB-3.333.303.310.05-0.09
Melbourne Airport4-Jun-205.00A-2.842.812.820.02-0.09
Telstra15-Jul-207.75A2.662.632.640.04-0.07
Perth Airport23-Jul-206.00BBB3.243.203.220.02-0.13
Mirvac Finance18-Sep-205.75BBB+3.203.173.170.03-0.13
Brisbane Airport21-Oct-206.00BBB3.223.193.190.01-0.10
Australia Post13-Nov-205.00AA2.792.762.770.04-0.11
Stockland25-Nov-208.25A-2.962.932.940.02-0.08
Univesity of Sydney16-Apr-214.75Aa12.732.692.700.03-0.10
Telstra19-Apr-212.90A2.882.822.850.06-0.05
Apple Inc28-Aug-223.70AA+2.932.882.900.03-0.12
Melbourne Airport15-Sep-224.00A-3.413.373.380.03-0.11
Telstra16-Sep-224.00A3.113.053.080.04-0.07
CBAAU27-May-244.75AA-3.243.193.20-0.08
Wells Fargo27-Aug-244.75A+3.653.603.610.03-0.20
Univesity of Sydney28-Aug-253.75Aa13.473.413.430.08-0.13
Westpac4-Jun-264.13AA-3.663.603.620.03-0.15
Apple Inc10-Jun-263.60AA+3.493.373.37-0.05-0.30
CBA11-Jun-264.20AA-3.663.613.620.03-0.15
ANZ22-Jul-264.00AA-3.673.613.630.02-0.16
NAB21-Sep-264.00AA-3.953.913.920.03-0.13
Qantas12-Oct-264.75BB+4.494.434.450.03-0.19
CBA17-Nov-263.25AA-3.633.583.590.02-0.19
Austpost1-Dec-264.00AA3.743.693.710.05-0.13
Telstra19/04/20274.00A3.883.823.850.05-0.12

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