20 Jun – 24 Jun 2016

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

Like a lot of things this week, not much happened until Friday.  Corporate spreads had been generally contracting, albeit in a very most fashion. Credit default swap (CDS) prices had also been falling and the day before the UK vote, the iTraxx index of CDS contracts was at its lowest level since around the start of the year, a sign of confidence in corporate debt. By the end of the week, iTraxx was at 136.2, up 3.7 for the week and up 11.2 from the day before.

itraxx-aus-jun24

Spreads widened considerably at the end of the week, as investors fled risk and bought safety.  However, with benchmarks yields dropping so drastically, even though spreads widened, corporate bond holders would have still done reasonably well, just not quite as well as holders of ACGBs and semis.

As with the week before, corporate issuance was thin on the ground. One of the issuers during the week said the lack of other issuers favoured its marketing plans and possibly allowed a lower yield than what would have been achieved in a more crowded market place. Another theme for the week, perhaps for June as a whole, is the emergence of more zero coupon bonds. This week there were two and both had June 2036 maturity dates (not the same one); one worth USD$50 million (AUD$66 million) was issued by Westpac and the other worth USD$30 million (AUD$40 million) came from ANZ. ANZ also issued CNY206 million (AUD$42 million) August 2018s during the week and there was a refinancing of $297.5 million Class A2-B (A) Firstmac RMBS at 1m BBSW+150bps.

corporate-jun24

Over in the Kangaroo market there was just the one deal. The Province of Quebec issued $100 million May 2026s at ACGB + 82.50bps which is 3bps less than the May 2026s they got away in late April.

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

Click here for new debt issues

AUS CORPORATE BONDS

ISSUERMATURITYCOUPON (%)RATINGWEEK
HIGH
WEEK
LOW
CLOSING
YIELD
Δ WEEKΔ MONTH
Stockland1-Jul-167.50A-2.492.472.48-0.01-0.17
Fonterra11-Jul-166.25A+2.362.332.33-0.05-0.17
Telstra2-Aug-167.00A2.282.232.23-0.06-0.16
Melb Airport25-Aug-167.00A-2.702.622.62-0.07-0.16
Mirvac Finance16-Sep-168.00BBB+2.922.722.72-0.21-0.24
Wesfarmers4-Nov-166.00A-2.692.602.60-0.06-0.07
Westpac18-Nov-167.25AA-2.212.152.15-0.05-0.10
Suncorp (CB)6-Dec-164.75n/a2.402.352.35-0.04-0.09
CBA (CB)25-Jan-175.75n/a2.232.152.15-0.06-0.12
Aust Post6-Feb-175.50AA2.612.512.51-0.06-0.06
Westpac (CB)6-Feb-175.75n/a2.242.152.15-0.06-0.11
NAB15-Feb-176.00AA-2.232.152.15-0.07-0.11
Westpac20-Feb-176.00AA-2.262.172.17-0.06-0.09
Crown18-Jul-175.75BBB3.373.283.28-0.04-0.04
BP Cap5-Sep-174.50A2.852.742.74-0.05-0.05
BHP18-Oct-173.75A+3.042.932.93-0.04-0.05
Telstra15-Nov-174.00A2.672.592.59-0.03-0.03
HSBC16-Nov-174.25AA-2.632.552.55-0.02-0.07
Westpac24-Jan-184.25AA-2.452.352.35-0.03-0.07
CBA25-Jan-184.25AA-2.452.352.35-0.03-0.06
NAB7-Mar-187.25AA-2.452.332.33-0.04-0.08
ANZ17-Apr-184.25AA-2.502.392.39-0.02-0.07
NAB23-May-184.00AA-2.502.392.39-0.03-0.09
Syd Airport6-Jul-187.75BBB3.042.912.91-0.04-0.12
ANZ6-Nov-184.50AA-2.642.512.51-0.02-0.07
Lendlease13-Nov-185.50BBB-3.813.683.68-0.03-0.07
Telstra13-Nov-184.50A2.812.672.67-0.04-0.09
Westpac25-Feb-194.50AA-2.692.552.55-0.03-0.08
Woolworths21-Mar-196.00A-3.533.433.430.00-0.05
Wesfarmers28-Mar-196.25A-3.112.962.96-0.05-0.09
CBA24-Apr-194.25AA-2.722.592.59-0.01-0.08
Bris Airport9-Jul-198.00BBB3.353.183.18-0.04-0.10
Apple Inc28-Aug-192.85AA+2.632.462.46-0.07-0.07
Stockland6-Sep-195.50A-3.373.243.24-0.01-0.06
DBNGP11-Oct-196.00BBB-3.893.733.73-0.04-0.10
Westfield Retail23-Oct-195.00A3.092.922.92-0.04-0.10
CBA5-Feb-207.25AA-2.842.682.68-0.03-0.11
Westpac11-Feb-207.25AA-2.842.682.68-0.03-0.12
Wesfarmers12-Mar-204.75A-3.323.153.15-0.04-0.12
Qantas27-Apr-206.50BB+4.314.144.14-0.04-0.10
Lendlease13-May-206.00BBB-4.424.254.25-0.04-0.13
Melb Airport4-Jun-205.00A-3.183.013.01-0.05-0.13
Telstra15-Jul-207.75A3.022.862.86-0.03-0.10
Perth Airport23-Jul-206.00BBB3.713.543.54-0.03-0.13
Mirvac Fin18-Sep-205.75BBB+3.803.633.63-0.04-0.12
Bris Airport21-Oct-206.00BBB3.653.473.47-0.04-0.14
Aust Post13-Nov-205.00AA2.902.732.73-0.04-0.12
Stockland25-Nov-208.25A-3.493.323.32-0.04-0.12
Uni Sydney16-Apr-214.75Aa12.742.562.56-0.05-0.17
Apple Inc28-Aug-223.70AA+3.052.892.89-0.02-0.10
Melb Airport15-Sep-224.00A-3.633.443.44-0.05-0.18
Telstra16-Sep-224.00A3.253.073.07-0.05-0.18
CBA (AU)27-May-244.75AA-2.962.832.830.04-0.13
Wells Fargo & Co.27-Aug-244.75A+3.663.463.46-0.05-0.26
Uni Sydney28-Aug-253.75Aa13.243.023.02-0.07-0.31