14 Jun – 17 Jun 2016

Share

Corporate spreads generally rose a couple of basis points over the week as corporate bond yields lagged their Commonwealth counterparts. Another measure of corporate risk, credit default swap prices, also rose again with the iTraxx CDS index finishing the week 3.4 points higher at 132.5. It may be just coincidence both spreads and CDS prices have risen but it is understandable given markets’ lack of certainty regarding the fallout from a Brexit “leave” vote.

itraxx-17jun

This sense of caution is flowing through to corporate debt issuers because both the number and value of bond issues during the week was well down. The Local Government Funding Vehicle (LGFV) returned after an 18 month absence and issued $150 million June 2026s at Swap + 145bps The LGFV is a vehicle comprising 30 local councils in Victoria. Its last debt issue was priced at 5y at Swap +75bps and 7y at Swap + 90bps. SGSPAA (a joint venture between the State Grid Corporation of China and Singapore Power) issued $350 million June 2023s at Swap + 182bps and Suncorp Group did the largest deal of the week with an issued which raised $500 million via covered April 2021 FRNs at 3m BBSW + 110bps.

corporate-17jun

While it seems as if “standard” corporate issuers went into their shells, superanational and agency issuers were reasonably active in the Kangaroo market, although the value of deals was slightly down on the previous week. African Development Bank issued $25 million June 2026s at ACGB + 52.25bps, KommuneKredit issued $80 million November 2026s at ACGB + 79.75bps, International Finance Corporation issued $60 million July 2026s at ACGB + 57.75bps, Municipality Finance issued $50 million February 2026s at ACGB + 72.25bps, Nederlandse Waterschapsbank issued $50 million September 2026s at ACGB + 81.25bps and Credit Agricole issued $49 million June 2020s.

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-2.492.482.48-0.01-0.17
Fonterra11-Jul-166.25A+2.382.372.37-0.01-0.18
Telstra2-Aug-167.00A2.302.292.29-0.01-0.10
Melb Airport25-Aug-167.00A-2.712.692.69-0.02-0.07
Mirvac Finance16-Sep-168.00BBB+2.962.932.93-0.02-0.02
Wesfarmers4-Nov-166.00A-2.682.652.67-0.020.02
Westpac18-Nov-167.25AA-2.212.202.20-0.02-0.03
Suncorp (CB)6-Dec-164.75n/a2.392.382.39-0.01-0.02
CBA (CB)25-Jan-175.75n/a2.222.202.20-0.03-0.04
Aust Post6-Feb-175.50AA2.602.572.57-0.030.03
Westpac (CB)6-Feb-175.75n/a2.232.202.21-0.03-0.03
NAB15-Feb-176.00AA-2.222.202.21-0.02-0.04
Westpac20-Feb-176.00AA-2.242.222.23-0.02-0.01
Crown18-Jul-175.75BBB3.353.043.32-0.050.02
BP Cap5-Sep-174.50A2.812.782.79-0.04-0.04
BHP18-Oct-173.75A+2.982.952.97-0.040.03
Telstra15-Nov-174.00A2.632.572.62-0.040.03
HSBC16-Nov-174.25AA-2.572.552.56-0.04-0.02
Westpac24-Jan-184.25AA-2.392.362.38-0.040.00
CBA25-Jan-184.25AA-2.392.362.38-0.040.01
NAB7-Mar-187.25AA-2.382.352.37-0.04-0.01
ANZ17-Apr-184.25AA-2.422.392.42-0.03-0.01
NAB23-May-184.00AA-2.422.392.41-0.04-0.03
Syd Airport6-Jul-187.75BBB2.952.932.95-0.04-0.04
ANZ6-Nov-184.50AA-2.542.512.53-0.03-0.01
Lendlease13-Nov-185.50BBB-3.713.643.71-0.030.00
Telstra13-Nov-184.50A2.722.642.71-0.040.00
Westpac25-Feb-194.50AA-2.572.542.57-0.02-0.02
Woolworths21-Mar-196.00A-3.433.343.43-0.020.00
Wesfarmers28-Mar-196.25A-3.012.943.01-0.020.00
CBA24-Apr-194.25AA-2.612.572.61-0.02-0.02
Bris Airport9-Jul-198.00BBB3.233.163.23-0.02-0.02
Apple Inc28-Aug-192.85AA+2.542.502.54-0.010.05
Stockland6-Sep-195.50A-3.253.153.25-0.02-0.01
DBNGP11-Oct-196.00BBB-3.773.743.77-0.02-0.01
Westfield Retail23-Oct-195.00A2.972.932.97-0.02-0.02
CBA5-Feb-207.25AA-2.722.672.72-0.01-0.03
Westpac11-Feb-207.25AA-2.712.672.71-0.01-0.04
Wesfarmers12-Mar-204.75A-3.193.103.19-0.02-0.02
Qantas27-Apr-206.50BB+4.184.144.18-0.020.01
Lendlease13-May-206.00BBB-4.294.194.29-0.02-0.07
Melb Airport4-Jun-205.00A-3.063.023.06-0.02-0.03
Telstra15-Jul-207.75A2.892.832.89-0.02-0.02
Perth Airport23-Jul-206.00BBB3.573.533.57-0.02-0.04
Mirvac Fin18-Sep-205.75BBB+3.673.623.67-0.02-0.02
Bris Airport21-Oct-206.00BBB3.523.463.52-0.02-0.04
Aust Post13-Nov-205.00AA2.772.722.77-0.02-0.02
Stockland25-Nov-208.25A-3.363.313.36-0.02-0.02
Uni Sydney16-Apr-214.75Aa12.612.532.61-0.02-0.07
Apple Inc28-Aug-223.70AA+2.912.882.91-0.02-0.03
Melb Airport15-Sep-224.00A-3.493.433.49-0.02-0.07
Telstra16-Sep-224.00A3.123.043.12-0.02-0.08
CBA (AU)27-May-244.75AA-2.812.632.800.13-0.11
Wells Fargo & Co.27-Aug-244.75A+3.513.443.51-0.02-0.16
Uni Sydney28-Aug-253.75Aa13.093.013.09-0.01-0.19