July 2015

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July was another busy month of issuance for corporates despite markets ‘freezing up’ while Greece sorted out its debt crisis. Corporate yields on our benchmark securities below fell between 15bps and 27bps with spreads to ACGBs mixed.

All four of the major domestic banks came out with new issues while Macquarie came out with arguably the largest issue of the month, worth US$1.75bn in three tranches towards the end of July. Foster’s launched a debut issue under its new owner (SAB Miller) and Transurban Queensland went about refinancing debt due to mature in 2016 and 2017.

The Kangaroo market saw a continued stream of issues but the issues of note were $650m Apr 2020 at ACGB + 64.75bps by KfW, $700m of Mar 2020 at ACGB + 54.5bps by IBRD and $500m at ACGB + 54bps by ADB.

corporate-yieldreport-july

iTraxx Series 23 eased a little by the end of the month but as shown in the chart opposite, it was a rocky ride with the index spiking up to 106.6 at the height of the Greek IMF ‘default’ early in the month, before settling back again just as quickly.

itraxx-yieldreport-july
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AUST CORPORATE BONDS

ISSUERMATURITYCOUPON
(%)
RATINGISSUE
SIZE ($m)
MONTH
HIGH
MONTH
LOW
CLOSING
YIELD
Δ MONTHΔ 2 MONTH
ANZ9-May-166.75AA-7752.412.322.33-0.050.03
Westpac9-May-166.75AA-6252.412.322.34-0.040.03
Transurban8-Jun-166.75A-2003.203.133.16-0.040.04
Stockland1-Jul-167.50A-03.002.922.95-0.040.07
Fonterra11-Jul-166.25A+02.772.702.73-0.040.07
Telstra2-Aug-167.00A02.542.442.47-0.060.05
Melb Airport25-Aug-167.00A-03.012.932.96-0.040.03
Mirvac Finance16-Sep-168.00BBB+03.153.063.09-0.060.04
Wesfarmers4-Nov-166.00A-5002.712.612.63-0.070.07
Westpac18-Nov-167.25AA-16952.512.382.42-0.070.03
Suncorp (CB)6-Dec-164.75n/a11002.602.482.51-0.070.03
CBA (CB)25-Jan-175.75n/a20002.472.352.39-0.070.04
Aust Post6-Feb-175.50AA02.802.692.72-0.060.06
Westpac (CB)6-Feb-175.75n/a17002.482.362.40-0.070.04
NAB15-Feb-176.00AA-13002.562.422.45-0.100.03
Westpac20-Feb-176.00AA-7252.552.402.43-0.110.01
Crown18-Jul-175.75BBB3003.573.403.43-0.110.06
BP Cap5-Sep-174.50A03.102.942.98-0.110.09
BHP18-Oct-173.75A+10003.102.892.92-0.100.14
Telstra15-Nov-174.00A7502.832.682.72-0.070.12
HSBC16-Nov-174.25AA-2502.872.712.76-0.100.05
Westpac24-Jan-184.25AA-2502.832.602.63-0.190.02
CBA25-Jan-184.25AA-7502.832.612.64-0.180.04
NAB7-Mar-187.25AA-7002.852.622.65-0.180.01
ANZ17-Apr-184.25AA-2502.902.652.69-0.190.01
NAB23-May-184.00AA-3252.932.692.72-0.190.02
Syd Airport6-Jul-187.75BBB03.523.303.33-0.150.01
ANZ6-Nov-184.50AA-3003.072.772.79-0.23-0.02
Lendlease13-Nov-185.50BBB-2504.043.863.90-0.080.17
Telstra13-Nov-184.50A5003.042.832.85-0.140.10
Westpac25-Feb-194.50AA-11003.152.842.86-0.240.01
Woolworths21-Mar-196.00A-5003.513.323.37-0.020.29
Wesfarmers28-Mar-196.25A-5003.313.083.11-0.140.11
CBA24-Apr-194.25AA-5003.202.902.91-0.240.01
Bris Airport9-Jul-198.00BBB2003.683.453.47-0.160.04
Stockland6-Sep-195.50A-1503.763.533.57-0.140.08
DBNGP11-Oct-196.00BBB-04.294.054.07-0.170.05
Westfield Retail23-Oct-195.00A03.763.513.55-0.150.07
CFS Retail19-Dec-195.00A03.613.383.40-0.160.05
CBA5-Feb-207.25AA-2503.423.093.10-0.270.04
Westpac11-Feb-207.25AA-3903.413.083.10-0.280.03
Wesfarmers12-Mar-204.75A-3503.553.293.33-0.160.11
Qantas27-Apr-206.50BB+2505.194.915.03-0.100.29
Lendlease13-May-206.00BBB-2254.404.184.21-0.110.17
Melb Airport4-Jun-205.00A-2253.773.503.52-0.190.04
Telstra15-Jul-207.75A5003.433.183.20-0.160.12
Perth Airport23-Jul-206.00BBB04.003.723.75-0.190.09
Mirvac Fin18-Sep-205.75BBB+2004.053.783.81-0.170.08
Bris Airport21-Oct-206.00BBB3504.003.733.78-0.150.10
Aust Post13-Nov-205.00AA03.513.243.25-0.200.07
Stockland25-Nov-208.25A-1604.043.793.81-0.170.09
Uni Sydney16-Apr-214.75n/a2003.463.123.12-0.270.01
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