04 Jul – 08 Jul 2016

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Corporate spreads fell across the board but the iTraxx index of credit default swap prices was marginally higher at 125.6, up 0.5 on the week. It was driven by a rise in bank CDS prices as all four of the major banks were placed on negative outlook by S&P as a consequence of Australia’s changed sovereign outlook resulting from a messy federal election. Commonwealth Bank however described the market’s reaction as “minimal…foreign buyers are unperturbed.”

itraxx-jul8

It certainly did not affect Australian bank issuance, with both Commonwealth and NAB the main players. NAB’s 4 tranche issue, worth USD$4 billion (AUD$5.4 billion),  kicked things off and then a day later Commonwealth sold $2.275 billion worth of 5 year notes comprising fixed and floating tranches. Commonwealth then went offshore to issue USD$2 billion (AUD$2.6 billion) worth of 20 year bonds as well as €125 million (AUD$190 million) 2031 bonds.

corporate-jul8

Other corporate issuance was more restrained but WSO Finance, a 50%-owned subsidiary of Transurban, issued $500 million of fixed and floating bonds while Shopping Centres of Australia returned to issue $50 million worth of 5 year bonds.

In the Kangaroo market, most transactions were quite modest. KommuneKredit issued $30 million November 2026s, Landeskreditbank issued $50 million August 2026s, Eurofima issued $75 million January 2027s and Bank Nederlandse Gemeenten issued $40 million August 2026s. International Finance Corporation bond issue of February 2021s stood because of its size at $350 million but otherwise it was typical for IFC.
All these and other bond issues can be found via the link below.

bhp-jul8

Click here for new debt issues

AUS CORPORATE BONDS

ISSUERMATURITYCOUPON (%)RATINGWEEK
HIGH
WEEK
LOW
CLOSING
YIELD
Δ WEEKΔ MONTH
Telstra2-Aug-167.00A2.252.232.23-0.01-0.12
Melb Airport25-Aug-167.00A-2.552.542.540.01-0.19
Mirvac Finance16-Sep-168.00BBB+2.742.732.730.01-0.20
Wesfarmers4-Nov-166.00A-2.652.642.64-0.02-0.06
Westpac18-Nov-167.25AA-2.172.142.14-0.02-0.07
Suncorp (CB)6-Dec-164.75n/a2.342.302.30-0.03-0.10
CBA (CB)25-Jan-175.75n/a2.192.162.170.00-0.02
Aust Post6-Feb-175.50AA2.562.532.530.00-0.06
Westpac (CB)6-Feb-175.75n/a2.202.162.17-0.01-0.04
NAB15-Feb-176.00AA-2.192.162.170.00-0.04
Westpac20-Feb-176.00AA-2.222.192.19-0.02-0.07
Crown18-Jul-175.75BBB3.343.303.31-0.25-0.29
BP Cap5-Sep-174.50A2.822.772.78-0.01-0.03
BHP18-Oct-173.75A+2.942.902.90-0.05-0.09
Telstra15-Nov-174.00A2.602.562.57-0.05-0.11
HSBC16-Nov-174.25AA-2.592.522.530.04-0.02
Westpac24-Jan-184.25AA-2.402.362.360.01-0.05
CBA25-Jan-184.25AA-2.402.362.370.01-0.05
NAB7-Mar-187.25AA-2.382.342.340.00-0.07
ANZ17-Apr-184.25AA-2.442.392.40-0.01-0.06
NAB23-May-184.00AA-2.422.372.380.00-0.07
Syd Airport6-Jul-187.75BBB2.972.922.93-0.01-0.06
ANZ6-Nov-184.50AA-2.542.492.50-0.01-0.09
Lendlease13-Nov-185.50BBB-3.653.583.59-0.13-0.20
Telstra13-Nov-184.50A2.702.652.66-0.03-0.11
Westpac25-Feb-194.50AA-2.582.532.540.01-0.07
Woolworths21-Mar-196.00A-3.433.383.39-0.05-0.12
Wesfarmers28-Mar-196.25A-2.992.942.96-0.04-0.11
CBA24-Apr-194.25AA-2.612.572.580.01-0.06
Bris Airport9-Jul-198.00BBB3.243.193.20-0.01-0.08
Apple Inc28-Aug-192.85AA+2.492.432.45-0.03-0.15
Stockland6-Sep-195.50A-3.223.173.19-0.07-0.16
DBNGP11-Oct-196.00BBB-3.763.713.72-0.01-0.10
Westfield Retail23-Oct-195.00A2.972.922.93-0.01-0.09
CBA5-Feb-207.25AA-2.702.662.680.00-0.09
Westpac11-Feb-207.25AA-2.702.652.670.00-0.09
Wesfarmers12-Mar-204.75A-3.173.113.13-0.05-0.15
Qantas27-Apr-206.50BB+4.214.144.16-0.02-0.09
Lendlease13-May-206.00BBB-4.234.164.18-0.11-0.21
Melb Airport4-Jun-205.00A-3.022.942.96-0.01-0.10
Telstra15-Jul-207.75A2.852.792.81-0.05-0.14
Perth Airport23-Jul-206.00BBB3.573.503.52-0.02-0.12
Mirvac Fin18-Sep-205.75BBB+3.603.533.55-0.06-0.16
Bris Airport21-Oct-206.00BBB3.493.423.44-0.02-0.13
Aust Post13-Nov-205.00AA2.772.702.71-0.02-0.12
Stockland25-Nov-208.25A-3.323.253.26-0.02-0.16
Uni Sydney16-Apr-214.75Aa12.582.502.52-0.05-0.17
Apple Inc28-Aug-223.70AA+2.882.782.80-0.05-0.16
Melb Airport15-Sep-224.00A-3.333.223.24-0.06-0.35
Telstra16-Sep-224.00A3.062.962.98-0.07-0.25
CBA (AU)27-May-244.75AA-2.732.502.730.00-0.18
Wells Fargo & Co.27-Aug-244.75A+3.433.303.32-0.03-0.25
Uni Sydney28-Aug-253.75Aa13.002.852.86-0.11-0.36