07 Sep – 11 Sep 2015

Share

[private role=’subscriber’]

Telstra and Melbourne Airports, both regular participants in domestic and offshore bond markets, issued 7y bonds. Melbourne Airport sold $250m at Swap + 137 while Telstra sold $500m of bonds at Swap + 130bps. Melbourne Airport last 7y bond issued in May 2013 cost them Swap + 150bps but Telstra’s last domestic issue was a 5y bond in November 2013 at Swap + 88bps. The Telstra pricing suggests spreads for one of our largest companies have widened somewhat.

corporatebonds-11sep

In contrast the China Construction Bank (Sydney) issued $400m 3y FRNs at 5bps more than the BBSW + 110bps they issued at in November 2013. PMP is partially refinancing the $50m of callable bonds it issued in 2013 with an issue of 4y non-callable bonds at a coupon which is over 2.25% less than two years ago. The new unrated issue is through FIIG Securities issues. Holders of the original PMP bonds will receive $103 per $100 face value because the bonds are being called early but this may not compensate them enough for the yields they will be looking to reinvest in.

Citigroup, via its Securitised Australia Mortgage Trust, upsized its RMBS issue to $1.25bn from $500m, paying 1m BBSW + 98bps while RedZed also upsized its latest 8 tranche RMBS issue to $250m from the $200m indicated earlier.

It was a relatively quiet week on the Kangaroo front with only three issues, although one was quite a sizable one from Toronto Dominion. TD issued $650m 3y FRNs at BBSW + 85bps while Municipality Finance issued $50m 10.5y bonds at ACGB + 66.25bps, Inter-American Development Bank $35m 10y bonds at ACGB + 58.5bps and Bank Nederlandse Gemeenten tapped their July 2025 line for $35m.

Click here for new debt issues

iTraxx has moved steadily higher through August and into September. It finished the week at 113.8, a shade under where it started but higher than the previous week’s close at 112.5. In what was an otherwise stable week, the index dipped down below 110 on Wednesday, only to bounce up back again the next day.

itraxx-11sep

[/private]

[private role=’subscriber’]

AUST CORPORATE BONDS

ISSUERMATURITYCOUPON (%)RATINGWEEK
HIGH
WEEK
LOW
CLOSING
YIELD
Δ WEEKΔ MONTH
ANZ9-May-166.75AA-2.372.312.370.080.00
Westpac9-May-166.75AA-2.362.312.360.07-0.02
Transurban8-Jun-166.75A-3.213.163.210.070.02
Stockland1-Jul-167.50A-2.962.912.960.08-0.02
Fonterra11-Jul-166.25A+2.752.692.750.09-0.02
Telstra2-Aug-167.00A2.472.412.470.08-0.05
Melb Airport25-Aug-167.00A-2.972.912.970.08-0.04
Mirvac Finance16-Sep-168.00BBB+3.073.003.070.10-0.06
Wesfarmers4-Nov-166.00A-2.662.582.660.10-0.03
Westpac18-Nov-167.25AA-2.412.332.410.11-0.05
Suncorp (CB)6-Dec-164.75n/a2.522.432.520.11-0.04
CBA (CB)25-Jan-175.75n/a2.402.322.400.11-0.03
Aust Post6-Feb-175.50AA2.702.632.700.09-0.07
Westpac (CB)6-Feb-175.75n/a2.392.322.390.10-0.06
NAB15-Feb-176.00AA-2.462.372.460.12-0.04
Westpac20-Feb-176.00AA-2.462.362.460.13-0.02
Crown18-Jul-175.75BBB3.393.323.390.10-0.10
BP Cap5-Sep-174.50A2.972.882.970.13-0.07
BHP18-Oct-173.75A+3.012.913.010.130.01
Telstra15-Nov-174.00A2.732.642.730.13-0.05
HSBC16-Nov-174.25AA-2.732.662.730.12-0.08
Westpac24-Jan-184.25AA-2.632.542.630.13-0.05
CBA25-Jan-184.25AA-2.642.552.640.13-0.05
NAB7-Mar-187.25AA-2.652.562.650.12-0.06
ANZ17-Apr-184.25AA-2.702.612.700.12-0.05
NAB23-May-184.00AA-2.712.632.710.12-0.06
Syd Airport6-Jul-187.75BBB3.293.213.290.11-0.11
ANZ6-Nov-184.50AA-2.792.702.790.13-0.06
Lendlease13-Nov-185.50BBB-3.943.833.940.14-0.04
Telstra13-Nov-184.50A2.942.812.940.170.01
Westpac25-Feb-194.50AA-2.862.772.860.12-0.07
Woolworths21-Mar-196.00A-3.543.403.540.180.09
Wesfarmers28-Mar-196.25A-3.093.013.090.12-0.10
CBA24-Apr-194.25AA-2.902.812.900.13-0.08
Bris Airport9-Jul-198.00BBB3.433.353.430.11-0.11
Apple Inc28 Aug 192.85AA+2.952.852.950.102.95
Stockland6-Sep-195.50A-3.553.453.550.13-0.09
DBNGP11-Oct-196.00BBB-4.033.944.030.13-0.11
Westfield Retail23-Oct-195.00A3.553.453.550.14-0.07
CFS Retail19-Dec-195.00A3.373.283.370.13-0.10
CBA5-Feb-207.25AA-3.072.993.070.12-0.10
Westpac11-Feb-207.25AA-3.123.013.120.15-0.05
Wesfarmers12-Mar-204.75A-3.353.253.350.13-0.06
Qantas27-Apr-206.50BB+4.864.794.860.11-0.21
Lendlease13-May-206.00BBB-4.264.184.260.12-0.04
Melb Airport4-Jun-205.00A-3.463.393.460.11-0.13
Telstra15-Jul-207.75A3.283.163.280.16-0.03
Perth Airport23-Jul-206.00BBB3.733.643.730.13-0.09
Mirvac Fin18-Sep-205.75BBB+3.733.663.730.11-0.15
Bris Airport21-Oct-206.00BBB3.723.653.720.11-0.13
Aust Post13-Nov-205.00AA3.213.143.210.11-0.12
Stockland25-Nov-208.25A-3.743.673.740.11-0.14
Uni Sydney16-Apr-214.75n/a3.123.053.120.10-0.07
Apple Inc28 Aug 223.70AA+3.863.703.850.153.85
[/private]