Summary: Corporate bond spreads 6bps wider on average; swap spreads tighter; iTraxx up 3.5 points.
Corporate spreads finished the week about 6bps wider on average as corporate yields generally lagged the falls of their Commonwealth counterparts. The majority of spreads’ week-on-week changes at the individual level were within a range of 2bps to 8bps. There were no particularly notable exceptions apart from one short-dated bond.
One of the two other main measures of corporate risk, swap-to-bond spreads, tightened along the curve. The other measure, credit default swap premiums, increased. The Australian credit default swap index, the iTraxx Australia Series 37, finished 3.50 points higher at 108.00 points.
Interested readers can find more details as well as other bond transactions in our tables via the link below.
| ISSUER | MATURITY | COUPON (%) | RATING | WEEK HIGH | WEEK LOW | CLOSING YIELD | Δ WEEK | Δ MONTH |
|---|---|---|---|---|---|---|---|---|
| Optus | 17-Jun-22 | 4.00 | A | 1.02 | 0.98 | 0.98 | 0.01 | 0.16 |
| GE Capital | 8-Aug-22 | 5.50 | BBB+ | 1.80 | 1.80 | 1.80 | 0.00 | 0.85 |
| Optus | 23-Aug-22 | 3.25 | A | 1.62 | 1.57 | 1.57 | 0.00 | 0.52 |
| Apple Inc | 28-Aug-22 | 3.70 | AA+ | 1.50 | 1.46 | 1.48 | 0.03 | 0.68 |
| Wells Fargo | 7-Sep-22 | 5.25 | A- | 1.89 | 1.84 | 1.87 | 0.03 | 0.64 |
| Melbourne Airport | 15-Sep-22 | 4.00 | BBB+ | 1.63 | 1.55 | 1.59 | 0.06 | 0.61 |
| Telstra | 16-Sep-22 | 4.00 | A | 1.76 | 1.70 | 1.70 | 0.01 | 0.61 |
| Stockland | 23-Nov-22 | 4.50 | A- | 2.07 | 1.86 | 1.95 | 0.15 | 0.65 |
| ANZ | 16-Aug-23 | 5.00 | AA- | 3.10 | 3.02 | 3.02 | 0.00 | 0.85 |
| Transpower NZ | 28-Aug-23 | 5.75 | AA- | 3.10 | 2.98 | 2.99 | 0.03 | 0.72 |
| Mirvac Finance | 18-Sep-23 | 3.50 | BBB+ | 3.37 | 3.24 | 3.24 | 0.01 | 0.73 |
| Qantas | 10-Oct-23 | 4.40 | BB+ | 4.14 | 4.04 | 4.04 | 0.02 | 0.67 |
| Australia Post | 13-Nov-23 | 5.50 | A+ | 3.18 | 3.05 | 3.05 | -0.05 | 0.69 |
| Westpac | 21-Nov-23 | 4.40 | AA- | 3.39 | 3.28 | 3.28 | -0.01 | 0.86 |
| Fonterra | 26-Feb-24 | 5.50 | A- | 3.61 | 3.50 | 3.50 | 0.03 | 0.72 |
| NAB | 11-Mar-24 | 5.00 | AA- | 3.45 | 3.36 | 3.37 | 0.02 | 0.71 |
| Rabobank Nederland (Aust) | 11-Apr-24 | 5.50 | A+ | 3.59 | 3.50 | 3.52 | 0.03 | 0.71 |
| CBA | 27-May-24 | 4.75 | AA- | 3.60 | 3.49 | 3.49 | -0.02 | 0.77 |
| AusNet | 21-Jun-24 | 4.00 | BBB+ | 4.24 | 4.13 | 4.13 | -0.01 | 0.65 |
| Macquarie Bank | 7-Aug-24 | 1.75 | A+ | 3.97 | 3.86 | 3.86 | -0.02 | 0.74 |
| Wells Fargo | 27-Aug-24 | 4.75 | A+ | 4.13 | 4.06 | 4.07 | 0.02 | 0.73 |
| University of Sydney | 28-Aug-25 | 3.75 | Aa1 | 3.83 | 3.71 | 3.71 | -0.03 | 0.49 |
| Apple Inc | 10-Jun-26 | 3.60 | AA+ | 4.00 | 3.90 | 3.91 | 0.02 | 0.63 |
| CBA | 11-Jun-26 | 4.20 | AA- | 4.18 | 4.08 | 4.08 | -0.01 | 0.65 |
| ANZ | 22-Jul-26 | 4.00 | AA- | 4.17 | 4.06 | 4.06 | -0.02 | 0.60 |
| Qantas | 12-Oct-26 | 4.75 | BB+ | 5.32 | 5.23 | 5.23 | 0.04 | 0.54 |
| Australia Pacific Airports | 4-Nov-26 | 3.75 | BBB+ | 4.74 | 4.63 | 4.63 | 0.00 | 0.55 |
| CBA | 17-Nov-26 | 3.25 | AA- | 4.19 | 4.09 | 4.09 | 0.00 | 0.74 |
| Australia Post | 1-Dec-26 | 4.00 | A+ | 4.09 | 3.97 | 3.97 | -0.03 | 0.56 |
| WSO Finance | 31-Mar-27 | 4.50 | A- | 4.57 | 4.47 | 4.47 | -0.01 | 0.55 |
| Telstra | 19-Apr-27 | 4.00 | A | 4.41 | 4.32 | 4.32 | 0.03 | 0.53 |
| Vicinity Centre | 26-Apr-27 | 4.00 | A | 4.59 | 4.48 | 4.48 | 0.00 | 0.41 |
| Dexus Finance | 11-May-27 | 4.25 | A3 | 4.51 | 4.40 | 4.40 | -0.01 | 0.51 |
| Asciano | 12-May-27 | 5.40 | BBB- | 5.76 | 5.65 | 5.68 | 0.06 | 0.66 |
| Fonterra | 2-Nov-27 | 4.00 | A- | 4.54 | 4.43 | 4.43 | 0.02 | 0.47 |
| Macquarie | 15-Dec-27 | 4.15 | BBB+ | 5.26 | 5.15 | 5.15 | -0.02 | 0.60 |
| AusNet | 21-Aug-28 | 4.20 | A- | 5.21 | 5.07 | 5.07 | -0.04 | 0.56 |