14 Dec – 18 Dec 2015

Share on LinkedInTweet about this on TwitterEmail this to someonePrint this page

[private role=’subscriber’]

Corporate bond yields were lower across the board over the week, typically by 9-10bps, whereas corresponding 5 year ACGB yields fell by 12bps. Spreads expanded mildly, but perhaps not as much as was expected given what was happening in the credit default swaps market (see below).

At this time of the year financial market activity generally slows and this was especially true in the corporate bond market. Most of the bonds sold were short-dated ones and Westpac was the most active issuer, selling USD$200 million (AUD$280 million) in two tranches of 1 year floating rate bonds into the US market at an average of Libor + 47.66bps, while a New Zealand subsidiary sold £100 million (AUD$208 million) worth of 1 year bonds into the UK market at 3m Libor + 68bps. Commonwealth Bank sold ¥6.848 billion (AUD$79 million) of 1.5 year fixed rate bonds in the Japanese market and Suncorp-Metway Bank issued $150 million worth of 1 year FRNs at BBSW +150bps into the local market. Coca Cola Amatil went against the short-duration trend for the week and issued $20 million worth of 10 year fixed rate bonds with a coupon of 425bps.

There were no deals in the Kangaroo market space last week.

Moody’s had placed Woodside on negative credit watch not long ago so it was only a matter of time before the same happened to Origin Energy. Moody’s said the change in Origin’s outlook was based on a reduction in Moody’s oil price assumptions, which came about after a recent analysis of global supply and demand.

The iTraxx Australian CDS index increased over the week, finishing at 131.1, up from the previous week’s 127.1. Most of the rise was on Monday, with the high reached on Tuesday, as fallout from a third high-yield fund redemption freeze increased the unease markets had for corporate issuers, driving up the price of bond default insurance.

 

corporate-bonds-18dec itraxx-18dec

Click here for new debt issues

[/private]

[private role=’subscriber’]

AUS CORPORATE BONDS

ISSUERMATURITYCOUPON (%)RATINGWEEK
HIGH
WEEK
LOW
CLOSING
YIELD
Δ WEEKΔ MONTH
ANZ9-May-166.75AA-2.552.542.540.000.06
Westpac9-May-166.75AA-2.552.542.540.000.07
Transurban8-Jun-166.75A-3.383.363.36-0.010.07
Stockland1-Jul-167.50A-3.133.123.12-0.050.02
Fonterra11-Jul-166.25A+2.962.952.95-0.020.06
Telstra2-Aug-167.00A2.692.672.67-0.030.04
Melb Airport25-Aug-167.00A-3.143.133.13-0.030.05
Mirvac Finance16-Sep-168.00BBB+3.323.303.30-0.030.04
Wesfarmers4-Nov-166.00A-2.952.922.93-0.040.04
Westpac18-Nov-167.25AA-2.642.612.61-0.040.06
Suncorp (CB)6-Dec-164.75n/a2.772.752.75-0.040.03
CBA (CB)25-Jan-175.75n/a2.632.592.59-0.060.02
Aust Post6-Feb-175.50AA2.912.882.88-0.050.03
Westpac (CB)6-Feb-175.75n/a2.632.602.60-0.050.03
NAB15-Feb-176.00AA-2.702.652.65-0.070.02
Westpac20-Feb-176.00AA-2.702.662.66-0.060.04
Crown18-Jul-175.75BBB3.653.613.62-0.060.03
BP Cap5-Sep-174.50A3.193.153.15-0.06-0.01
BHP18-Oct-173.75A+3.563.443.550.020.18
Telstra15-Nov-174.00A3.012.962.96-0.060.00
HSBC16-Nov-174.25AA-2.982.932.94-0.050.03
Westpac24-Jan-184.25AA-2.872.812.82-0.070.01
CBA25-Jan-184.25AA-2.872.832.83-0.060.02
NAB7-Mar-187.25AA-2.882.822.83-0.060.01
ANZ17-Apr-184.25AA-2.952.902.90-0.070.00
NAB23-May-184.00AA-2.952.902.90-0.070.00
Syd Airport6-Jul-187.75BBB3.433.383.38-0.08-0.04
ANZ6-Nov-184.50AA-3.073.003.00-0.09-0.02
Lendlease13-Nov-185.50BBB-4.384.314.31-0.09-0.02
Telstra13-Nov-184.50A3.203.123.12-0.09-0.02
Westpac25-Feb-194.50AA-3.143.073.07-0.10-0.03
Woolworths21-Mar-196.00A-3.923.813.84-0.09-0.03
Wesfarmers28-Mar-196.25A-3.433.363.36-0.08-0.02
CBA24-Apr-194.25AA-3.173.103.10-0.09-0.03
Bris Airport9-Jul-198.00BBB3.643.573.57-0.10-0.04
Apple Inc28-Aug-192.85AA+3.002.912.91-0.11-0.08
Stockland6-Sep-195.50A-3.793.693.69-0.11-0.07
DBNGP11-Oct-196.00BBB-4.204.124.12-0.10-0.09
Westfield Retail23-Oct-195.00A3.803.723.72-0.10-0.05
CFS Retail19-Dec-195.00A3.493.413.41-0.10-0.06
CBA5-Feb-207.25AA-3.303.223.22-0.10-0.06
Westpac11-Feb-207.25AA-3.313.233.23-0.10-0.08
Wesfarmers12-Mar-204.75A-3.653.573.57-0.09-0.04
Qantas27-Apr-206.50BB+5.205.115.11-0.10-0.18
Lendlease13-May-206.00BBB-4.754.664.66-0.10-0.06
Melb Airport4-Jun-205.00A-3.633.553.55-0.10-0.08
Telstra15-Jul-207.75A3.543.463.46-0.10-0.06
Perth Airport23-Jul-206.00BBB4.104.014.01-0.09-0.02
Mirvac Fin18-Sep-205.75BBB+4.294.064.06-0.09-0.01
Bris Airport21-Oct-206.00BBB3.963.873.87-0.10-0.07
Aust Post13-Nov-205.00AA3.363.283.28-0.10-0.08
Stockland25-Nov-208.25A-3.963.883.88-0.10-0.08
Uni Sydney16-Apr-214.75Aa13.233.143.14-0.09-0.11
Apple Inc28-Aug-223.70AA+3.673.573.57-0.09-0.10
Melb Airport15-Sep-224.00A-4.063.973.97-0.10-0.13
Telstra16-Sep-224.00A3.943.823.82-0.10-0.19
CBA (AU)27-May-244.75AA-3.613.513.51-0.10-0.10
NAB25-Jun-245.00AA-4.043.943.94-0.11-0.05
Wells Fargo & Co.27-Aug-244.75A+4.224.114.12-0.07-0.02
Uni Sydney28-Aug-253.75Aa14.013.913.91-0.10-0.08
[/private]