22 June – 26 June 2015

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Corporate bond yields rose last week but spreads to ACGBs largely narrowed. The exception was the Telstra’s July 2020 that rose in line with ACGBs.

Last week W.A. Stockwell Pty Ltd, a QLD-based property group announced an issue of 7.75% 2021 secured notes. The issue was arranged by FIIG Securities. The notes will amortise by $5m on each anniversary commencing on the second anniversary (June 2017) and ending on the fifth anniversary (June 2020) meaning that investors will receive a lump sum payment back from the issuer on these dates.

Readers will recall logistics group SCT were to issue a minimum $75m of fixed and floating notes. SCT announced the issue had closed oversubscribed, having raised $85m. A subsidiary of Genworth last week sold $200m A- rated tier 2 subordinated notes at BBSW +350bps. These notes are callable on 2020 but otherwise mature in 2025. The notes will not convert into equity should the non-viability clause be triggered but rather be written off completely. Rabobank issued $700m of a two-tranche 5y callable tier 2 note at Swap + 250bps. Eurofima added $30m to their 2025 line of kangaroo bonds.

More on new debt issues

iTraxx slipped 2.9 points to 91.9 over the week indicating the cost of insuring corporate debt reduced.

cor-bonds-26juneitraxx-26june

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AUST CORPORATE BONDS

ISSUERMATURITYCOUPON
(%)
RATINGWEEK
HIGH
WEEK
LOW
CLOSING
YIELD
Δ WEEKΔ MONTH
ANZ9-May-166.75AA-2.412.362.390.040.16
WESTPAC9-May-166.75AA-2.422.372.390.040.15
TRANSURBAN8-Jun-166.75A-3.243.173.220.070.25
STOCKLAND1-Jul-167.50A-3.002.932.990.090.23
FONTERRA11-Jul-166.25A+2.782.742.780.060.25
TELSTRA2-Aug-167.00A2.542.492.540.080.25
MLBAIRPORT25-Aug-167.00A-3.022.973.010.070.19
MIRVAC FIN16-Sep-168.00BBB+3.183.113.160.080.20
WESFARMERS4-Nov-166.00A-2.712.642.710.100.28
WESTPAC18-Nov-167.25AA-2.492.442.490.080.22
CB SUNCORP6-Dec-164.75N/A2.592.542.590.080.21
CB CBA25-Jan-175.75N/A2.452.412.450.080.20
AUSTPOST6-Feb-175.50AA2.792.732.790.100.28
CB WESTPAC6-Feb-175.75N/A2.472.422.460.090.21
NAB15-Feb-176.00AA-2.552.492.550.100.26
WESTPAC20-Feb-176.00AA-2.542.492.540.090.25
CROWN18-Jul-175.75BBB3.543.453.540.130.33
BPCAP5-Sep-174.50A3.102.993.100.150.35
BHP18-Oct-173.75A+3.032.933.030.150.50
TELSTRA15-Nov-174.00A2.802.702.800.150.37
HSBC16-Nov-174.25AA-2.892.782.870.140.31
WESTPAC24-Jan-184.25AA-2.822.732.820.140.35
CBA25-Jan-184.25AA-2.822.732.820.150.35
NAB7-Mar-187.25AA-2.832.742.830.150.33
ANZ17-Apr-184.25AA-2.892.792.890.150.34
NAB23-May-184.00AA-2.922.822.920.160.36
SYDAIRPORT6-Jul-187.75BBB3.523.423.520.160.29
ANZ6-Nov-184.50AA-3.042.943.040.150.37
LENDLEASE13-Nov-185.50BBB-4.033.884.030.210.48
TELSTRA13-Nov-184.50A3.022.893.020.190.45
WESTPAC25-Feb-194.50AA-3.113.013.110.150.38
WOOLWORTHS21-Mar-196.00A-3.433.223.430.260.60
WESFARMERS28-Mar-196.25A-3.293.163.290.180.44
CBA24-Apr-194.25AA-3.173.083.170.150.39
BRISAIR9-Jul-198.00BBB3.673.573.670.160.42
STOCKLAND6-Sep-195.50A-3.753.633.740.170.45
DBNGP11-Oct-196.00BBB-4.284.184.280.160.44
WESTF RET23-Oct-195.00A3.743.633.740.170.46
CFS RETAIL19-Dec-195.00A3.603.503.600.150.44
CBA5-Feb-207.25AA-3.373.303.370.120.47
WESTPAC11-Feb-207.25AA-3.393.293.390.150.49
WESFARMERS12-Mar-204.75A-3.523.403.520.170.48
QANTAS27-Apr-206.50BB+5.225.075.160.150.33
LENDLEASE13-May-206.00BBB-4.364.224.360.190.53
MLBAIRPORT4-Jun-205.00A-3.753.643.750.160.49
TELSTRA15-Jul-207.75A3.403.273.390.190.56
PERTH AIR23-Jul-206.00BBB3.983.853.980.170.59
MIRVAC FIN18-Sep-205.75BBB+4.013.914.010.150.46
BRISAIR21-Oct-206.00BBB3.963.873.960.140.54
AUSTPOST13-Nov-205.00AA3.493.393.490.150.53
STOCKLAND25-Nov-208.25A-4.013.904.010.160.51
UNISYD16-Apr-214.75N/A3.433.323.430.150.53
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