13 July – 17 July 2015

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Corporate bond yields were essentially steady last week although Westpac Feb 2020 and Telstra Jul 2020 yields fell a little. As with the semis market, spreads to ACGBs contracted very modestly as market participants moved focus from the ACGB market.

Last week was a busy one for corporate issues, as if issuers had been waiting for a resolution to the market volatility. The four major banks and Macquarie issued a variety of bonds and notes in the domestic and offshore markets. CBA issued $1.5bn 5y FRNs at BBSW + 90bps, Westpac issued $2.7bn of 5y floaters at BBSW + 90bps and $200m of fixed rate notes at BBSW + 90bps. Toronto Dominion issued its first unsecured domestic notes – $350m of 18m FRNs at BBSW + 48bps.

NAB issued US$750m of 3y FRNs, US$750m of 3y fixed rate bonds and US$1bn of fixed rate 5y bonds in the US s144A market. The pricing was reported to be swapped back into the AUD market at an equivalent Swap + 89bps for the 3y tranches and Swap + 118bps for the 5y tranche making it more expensive than CBA and Westpac’s issues.

In the kangaroo market BNG returned and added $60m Jul 2025s at ACGB + 75bps, KfW added $650m of its Apr 2020 line at ACGB + 64.75bps and NWB added $25m of its Jul 2025 line at ACGB + 74.5bps.

Click here for new debt issues

iTraxx hit a recent high of 106 on 8 July and has since moved back to 93.2 as concerns about Greece and China have subsided. It was down 6.4pts on the week.

corporate-yield-17julyitraxx-yield-17july

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AUST CORPORATE BONDS

ISSUERMATURITYCOUPON (%)RATINGWEEK
HIGH
WEEK
LOW
CLOSING
YIELD
Δ WEEKΔ MONTH
ANZ9-May-166.75AA-2.412.372.38-0.010.04
WESTPAC9-May-166.75AA-2.402.372.380.000.03
TRANSURBAN8-Jun-166.75A-3.203.183.180.000.03
STOCKLAND1-Jul-167.50A-2.992.972.970.000.07
FONTERRA11-Jul-166.25A+2.772.742.75-0.010.03
TELSTRA2-Aug-167.00A2.532.502.510.000.05
MLBAIRPORT25-Aug-167.00A-3.012.982.990.000.05
MIRVAC FIN16-Sep-168.00BBB+3.153.123.130.000.05
WESFARMERS4-Nov-166.00A-2.692.662.670.000.06
WESTPAC18-Nov-167.25AA-2.482.462.460.000.05
CB SUNCORP6-Dec-164.75N/A2.572.542.550.000.04
CB CBA25-Jan-175.75N/A2.472.412.42-0.020.05
AUSTPOST6-Feb-175.50AA2.782.752.760.000.07
CB WESTPAC6-Feb-175.75N/A2.452.422.440.010.06
NAB15-Feb-176.00AA-2.542.502.50-0.010.05
WESTPAC20-Feb-176.00AA-2.522.492.500.000.04
CROWN18-Jul-175.75BBB3.573.513.530.030.12
BPCAP5-Sep-174.50A3.063.023.03-0.010.08
BHP18-Oct-173.75A+3.052.992.99-0.030.10
TELSTRA15-Nov-174.00A2.812.772.770.000.12
HSBC16-Nov-174.25AA-2.872.832.830.020.10
WESTPAC24-Jan-184.25AA-2.772.712.71-0.030.03
CBA25-Jan-184.25AA-2.782.722.72-0.030.05
NAB7-Mar-187.25AA-2.792.752.75-0.010.07
ANZ17-Apr-184.25AA-2.852.782.78-0.040.05
NAB23-May-184.00AA-2.872.822.82-0.010.06
SYDAIRPORT6-Jul-187.75BBB3.453.413.410.000.05
ANZ6-Nov-184.50AA-2.992.932.93-0.020.05
LENDLEASE13-Nov-185.50BBB-4.033.983.980.000.16
TELSTRA13-Nov-184.50A2.992.942.94-0.010.10
WESTPAC25-Feb-194.50AA-3.052.982.98-0.030.02
WOOLWORTHS21-Mar-196.00A-3.503.443.44-0.020.28
WESFARMERS28-Mar-196.25A-3.253.203.200.000.10
CBA24-Apr-194.25AA-3.123.063.06-0.010.04
BRISAIR9-Jul-198.00BBB3.623.573.570.000.06
STOCKLAND6-Sep-195.50A-3.723.673.67-0.010.09
DBNGP11-Oct-196.00BBB-4.234.174.17-0.010.04
WESTF RET23-Oct-195.00A3.703.643.64-0.010.06
CFS RETAIL19-Dec-195.00A3.563.503.50-0.010.05
CBA5-Feb-207.25AA-3.313.263.26-0.010.00
WESTPAC11-Feb-207.25AA-3.323.253.25-0.030.01
WESFARMERS12-Mar-204.75A-3.483.423.420.000.07
QANTAS27-Apr-206.50BB+5.165.095.09-0.010.07
LENDLEASE13-May-206.00BBB-4.374.314.31-0.020.13
MLBAIRPORT4-Jun-205.00A-3.693.623.62-0.010.03
TELSTRA15-Jul-207.75A3.373.303.30-0.020.10
PERTH AIR23-Jul-206.00BBB3.933.863.860.000.06
MIRVAC FIN18-Sep-205.75BBB+3.983.913.91-0.010.05
BRISAIR21-Oct-206.00BBB3.923.873.880.020.06
AUSTPOST13-Nov-205.00AA3.463.383.38-0.020.04
STOCKLAND25-Nov-208.25A-3.993.923.92-0.010.07
UNISYD16-Apr-214.75N/A3.403.323.32-0.030.05
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