25 Jan – 29 Jan 2016

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The week saw a doubling in the value of bonds issued by local issuers with over $4 billion of bonds issued. CBA started the week with a small €50 million (AUD$78 million) bond issue out to an unusual 20 years. The bank followed up with a two tranche covered bond issue comprising a €500m (AUD$$776 million) 15 year component and a €750 million (AUD$1.165 billion) 5 year component.

Floating rate debt issues have been more prevalent of late and Royal Bank of Canada (Sydney) issued $800million worth of July 2026 floating rate bonds paying interest at 3m BBSW + 128bps. ANZ (NZ Branch) also went for a two tranche fixed rate issue denominated in USD; the first a 5 year for USD$500 million (AUD$1.069 million) Treasurys + 130bps; the second for USD$750 million (AUD$1.069 million of 3 year bonds at Treasurys + 115bps.

corporate-bonds-29jan

It was a busy week in the Kangaroo bond market, with over $500 million raised by regular issuers. Spreads have been narrowing and prices compared favourably with previous issues’ pricing. Lloyds Bank sold $100 million August 2025s at ACGB + 149.75bps, (167bps in September), Rentenbank sold $75 million May 2026s at ACGB + 47.25bps (54.5bps in October), Inter-American Development Bank sold $55 million October 2025s at ACGB + 54.5bps, (56.5bps in October), Toronto Dominion issued a new 10 year bond at ACGB +135.25bps (149.25bps for a different 10 year bond in August). European Investment Bank sold $200 million January 2021s at ACGB + 67.25bps, 3bps lower than their issue form three weeks earlier and Eurofima issued issue $75 million December 2025s at Swap + 62bps (no comparable pricing available).

itraxx-29jan

The iTraxx Australian credit default swap index fell back over the week, finishing at 140.3, down from the previous week’s 144.8. Most of the rise in recent weeks has been from the increased price of credit default swap (CDS) contracts on mining companies, but in this last week almost all CDs prices fell, whether in the resources sector or not.

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AUS CORPORATE BONDS

ISSUERMATURITYCOUPON (%)RATINGWEEK
HIGH
WEEK
LOW
CLOSING
YIELD
Δ WEEKΔ MONTH
ANZ9-May-166.75AA-2.492.462.48-0.02-0.06
Westpac9-May-166.75AA-2.512.482.51-0.01-0.03
Transurban8-Jun-166.75A-3.263.093.19-0.08-0.18
Stockland1-Jul-167.50A-3.043.033.03-0.01-0.09
Fonterra11-Jul-166.25A+2.912.862.900.03-0.05
Telstra2-Aug-167.00A2.632.582.620.03-0.05
Melb Airport25-Aug-167.00A-3.023.003.00-0.04-0.13
Mirvac Finance16-Sep-168.00BBB+3.263.203.20-0.02-0.10
Wesfarmers4-Nov-166.00A-2.902.842.880.03-0.05
Westpac18-Nov-167.25AA-2.562.512.550.03-0.06
Suncorp (CB)6-Dec-164.75n/a2.702.632.660.03-0.09
CBA (CB)25-Jan-175.75n/a2.552.502.530.01-0.06
Aust Post6-Feb-175.50AA2.782.722.750.02-0.13
Westpac (CB)6-Feb-175.75n/a2.562.492.530.03-0.07
NAB15-Feb-176.00AA-2.602.542.580.01-0.07
Westpac20-Feb-176.00AA-2.602.552.580.02-0.08
Crown18-Jul-175.75BBB3.573.513.530.00-0.09
BP Cap5-Sep-174.50A3.123.053.060.01-0.09
BHP18-Oct-173.75A+3.563.483.500.00-0.05
Telstra15-Nov-174.00A2.902.842.860.00-0.10
HSBC16-Nov-174.25AA-2.842.802.820.01-0.12
Westpac24-Jan-184.25AA-2.752.692.730.02-0.09
CBA25-Jan-184.25AA-2.772.702.730.01-0.10
NAB7-Mar-187.25AA-2.762.702.730.03-0.10
ANZ17-Apr-184.25AA-2.852.772.800.01-0.09
NAB23-May-184.00AA-2.822.772.790.00-0.11
Syd Airport6-Jul-187.75BBB3.253.203.20-0.03-0.18
ANZ6-Nov-184.50AA-2.932.882.890.03-0.11
Lendlease13-Nov-185.50BBB-4.354.174.250.07-0.06
Telstra13-Nov-184.50A3.062.982.98-0.03-0.14
Westpac25-Feb-194.50AA-2.972.922.92-0.02-0.15
Woolworths21-Mar-196.00A-3.813.743.780.02-0.06
Wesfarmers28-Mar-196.25A-3.283.213.21-0.04-0.15
CBA24-Apr-194.25AA-3.022.972.97-0.02-0.13
Bris Airport9-Jul-198.00BBB3.453.393.39-0.04-0.18
Apple Inc28-Aug-192.85AA+2.862.742.74-0.04-0.17
Stockland6-Sep-195.50A-3.583.503.50-0.07-0.19
DBNGP11-Oct-196.00BBB-3.973.933.93-0.05-0.19
Westfield Retail23-Oct-195.00A3.623.573.57-0.06-0.15
CFS Retail19-Dec-195.00A3.273.223.22-0.03-0.19
CBA5-Feb-207.25AA-3.123.043.04-0.07-0.18
Westpac11-Feb-207.25AA-3.123.073.07-0.04-0.15
Wesfarmers12-Mar-204.75A-3.503.433.43-0.04-0.14
Qantas27-Apr-206.50BB+5.104.864.86-0.06-0.25
Lendlease13-May-206.00BBB-4.534.494.49-0.02-0.17
Melb Airport4-Jun-205.00A-3.433.363.36-0.06-0.19
Telstra15-Jul-207.75A3.353.283.28-0.08-0.18
Perth Airport23-Jul-206.00BBB3.913.833.83-0.06-0.18
Mirvac Fin18-Sep-205.75BBB+4.023.913.91-0.05-0.14
Bris Airport21-Oct-206.00BBB3.763.683.68-0.05-0.19
Aust Post13-Nov-205.00AA3.133.093.09-0.03-0.19
Stockland25-Nov-208.25A-3.743.683.68-0.06-0.20
Uni Sydney16-Apr-214.75Aa13.063.003.00-0.02-0.15
Apple Inc28-Aug-223.70AA+3.443.373.37-0.05-0.20
Melb Airport15-Sep-224.00A-3.823.753.75-0.08-0.22
Telstra16-Sep-224.00A3.673.573.57-0.10-0.25
CBA (AU)27-May-244.75AA-3.373.283.28-0.08-0.22
NAB25-Jun-245.00AA-3.803.723.72-0.09-0.22
Wells Fargo & Co.27-Aug-244.75A+3.973.923.92-0.04-0.20
Uni Sydney28-Aug-253.75Aa13.773.643.64-0.14-0.27
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