31 Aug– 04 Sep 2015

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Commonwealth Bank announced its second RMBS issue of 2015 under its Medallion programme and doubled the initial indicated volume of $1b to $2bn. Spreads on the new issue are around 10bps wider than a similar issue back in February.

Auckland Council had a sizeable deal with $100m 10.5y bonds at ACGB + 79.25bps. This was issued into the domestic Australian market and received well. The Council has issued a number of AUD issues in the European Kangaroo market in the past. In other Kangaroo deals JP Morgan issued $65m 10y bonds at Swap + 135bps, Corporación Andina de Fomento issued $50m 10y bonds at ACGB + 154bps and Nederlandse Waterschapsbank returned after a six week absence to issue $30m July 2025s.

corporate-bonds-4sep
Click here for new debt issues

iTraxx kicked back up above 110 to finish the week at 112.5, not all that far for it three year high of just over 115. The trend for the week was up, with the index finishing at or close to the high for the week. iTraxx, being a basket of credit default swap contracts, measures the general cost of insuring against issuer default. The rise in this index therefore can be read as the market’s view of corporate conditions becoming increasingly difficult in light of weakness in Australia’s largest export market coupled with anaemic domestic growth.

itraxx-4sep
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AUST CORPORATE BONDS

ISSUERMATURITYCOUPON (%)RATINGWEEK
HIGH
WEEK
LOW
CLOSING
YIELD
Δ WEEKΔ MONTH
ANZ9-May-166.75AA-2.292.272.290.02-0.08
Westpac9-May-166.75AA-2.292.272.290.02-0.08
Transurban8-Jun-166.75A-3.163.143.14-0.01-0.05
Stockland1-Jul-167.50A-2.892.872.880.01-0.10
Fonterra11-Jul-166.25A+2.672.652.670.01-0.11
Telstra2-Aug-167.00A2.402.382.390.00-0.13
Melb Airport25-Aug-167.00A-2.892.872.880.00-0.12
Mirvac Finance16-Sep-168.00BBB+2.982.972.970.00-0.16
Wesfarmers4-Nov-166.00A-2.572.542.550.00-0.13
Westpac18-Nov-167.25AA-2.322.302.30-0.01-0.16
Suncorp (CB)6-Dec-164.75n/a2.422.412.41-0.02-0.15
CBA (CB)25-Jan-175.75n/a2.322.282.290.00-0.14
Aust Post6-Feb-175.50AA2.632.602.60-0.02-0.17
Westpac (CB)6-Feb-175.75n/a2.312.272.290.00-0.16
NAB15-Feb-176.00AA-2.362.342.34-0.03-0.16
Westpac20-Feb-176.00AA-2.352.332.33-0.01-0.15
Crown18-Jul-175.75BBB3.333.293.29-0.04-0.19
BP Cap5-Sep-174.50A2.882.842.84-0.05-0.20
BHP18-Oct-173.75A+2.922.872.87-0.03-0.12
Telstra15-Nov-174.00A2.652.612.61-0.04-0.18
HSBC16-Nov-174.25AA-2.662.612.61-0.05-0.21
Westpac24-Jan-184.25AA-2.562.512.51-0.05-0.18
CBA25-Jan-184.25AA-2.572.522.52-0.06-0.18
NAB7-Mar-187.25AA-2.582.532.53-0.06-0.18
ANZ17-Apr-184.25AA-2.632.582.58-0.06-0.18
NAB23-May-184.00AA-2.652.592.59-0.06-0.18
Syd Airport6-Jul-187.75BBB3.233.183.18-0.08-0.22
ANZ6-Nov-184.50AA-2.732.672.67-0.07-0.19
Lendlease13-Nov-185.50BBB-3.863.793.79-0.08-0.18
Telstra13-Nov-184.50A2.822.772.77-0.07-0.17
Westpac25-Feb-194.50AA-2.782.732.73-0.07-0.19
Woolworths21-Mar-196.00A-3.433.363.36-0.09-0.08
Wesfarmers28-Mar-196.25A-3.032.972.97-0.08-0.22
CBA24-Apr-194.25AA-2.832.772.77-0.09-0.21
Bris Airport9-Jul-198.00BBB3.373.313.31-0.09-0.23
Stockland6-Sep-195.50A-3.483.423.42-0.10-0.22
DBNGP11-Oct-196.00BBB-3.963.903.90-0.10-0.25
Westfield Retail23-Oct-195.00A3.473.413.41-0.10-0.22
CFS Retail19-Dec-195.00A3.303.243.24-0.10-0.23
CBA5-Feb-207.25AA-3.012.952.95-0.10-0.23
Westpac11-Feb-207.25AA-3.032.972.97-0.09-0.20
Wesfarmers12-Mar-204.75A-3.283.223.22-0.08-0.19
Qantas27-Apr-206.50BB+4.814.754.75-0.11-0.32
Lendlease13-May-206.00BBB-4.204.144.14-0.10-0.16
Melb Airport4-Jun-205.00A-3.423.353.35-0.11-0.24
Telstra15-Jul-207.75A3.183.113.12-0.06-0.18
Perth Airport23-Jul-206.00BBB3.673.613.61-0.11-0.21
Mirvac Fin18-Sep-205.75BBB+3.693.623.62-0.11-0.26
Bris Airport21-Oct-206.00BBB3.683.623.62-0.10-0.24
Aust Post13-Nov-205.00AA3.173.103.10-0.11-0.23
Stockland25-Nov-208.25A-3.703.633.63-0.11-0.25
Uni Sydney16-Apr-214.75n/a3.083.023.02-0.11-0.18
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