Summary: Corporate bond spreads 4bps lower on average; swap spreads widen; iTraxx decreases.
Corporate spreads finished the week narrower on average as corporate bond yields lagged the rises of their Commonwealth counterparts. The majority of spreads’ week-on-week changes at the individual level were within a range of -5bps to 1bp, the only notable exception coming from Asciano May 2027s (spread: 333bps, +7bps).
One of the two other main measures of corporate risk, swap-to-bond spreads, widened. The other main measure, credit default swap premiums, decreased on average. The Australian credit default swap index, the iTraxx Australia Series 38, finished 4.50 points lower at 78.50 points.
AUSTRALIAN CORPORATE BONDS
| ISSUER | MATURITY | COUPON (%) | RATING | CLOSING YIELD | Δ WEEK | Δ MONTH | WEEK HIGH | WEEK LOW |
|---|---|---|---|---|---|---|---|---|
| ANZ BANK | 16-Aug-23 | 5.00 | AA- | 4.49 | -0.02 | 0.23 | 4.51 | 4.48 |
| SUNCORP-METWAY | 13-Sep-23 | 3.00 | 4.63 | 0.01 | 0.32 | 4.63 | 4.58 | |
| QANTAS | 10-Oct-23 | 4.40 | 5.35 | 0.00 | 0.34 | 5.35 | 5.29 | |
| AUSTRALIA POST | 13-Nov-23 | 5.50 | A+ | 4.72 | -0.02 | 0.32 | 4.72 | 4.66 |
| WESTPAC | 21-Nov-23 | 5.25 | 4.72 | -0.04 | 0.34 | 4.72 | 4.66 | |
| FONTERRA | 26-Feb-24 | 5.50 | A- | 5.05 | -0.01 | 0.52 | 5.05 | 4.94 |
| NATIONAL AUST. BANK | 11-Mar-24 | 5.00 | 4.93 | -0.03 | 0.47 | 4.93 | 4.83 | |
| RABOBANK NEDERLANDS AUST | 11-Apr-24 | 5.50 | A+ | 5.06 | -0.02 | 0.44 | 5.06 | 4.95 |
| COMMONWEALTH BANK | 27-May-24 | 4.75 | 5.02 | -0.01 | 0.48 | 5.02 | 4.91 | |
| AURIZON NETWORK | 21-Jun-24 | 4.00 | BBB+ | 5.57 | -0.02 | 0.54 | 5.57 | 5.45 |
| MACQUARIE BANK | 7-Aug-24 | 1.75 | A+ | 5.21 | -0.01 | 0.50 | 5.21 | 5.08 |
| WELLS FARGO | 27-Aug-24 | 4.75 | BBB+ | 5.58 | 0.00 | 0.42 | 5.58 | 5.45 |
| WOOLWORTHS | 20-May-25 | 1.85 | BBB | 5.17 | 0.01 | 0.60 | 5.17 | 5.02 |
| UNIVERSITY OF SYDNEY | 28-Aug-25 | 3.75 | 5.00 | -0.01 | 0.54 | 5.00 | 4.84 | |
| NBN CO | 3-Dec-25 | 1.00 | 5.21 | -0.08 | 0.54 | 5.21 | 5.11 | |
| APPLE | 10-Jun-26 | 3.60 | AA+ | 4.92 | -0.01 | 0.54 | 4.92 | 4.74 |
| COMMONWEALTH BANK | 11-Jun-26 | 4.20 | AA- | 5.12 | -0.03 | 0.50 | 5.12 | 4.95 |
| ANZ BANK | 22-Jul-26 | 4.00 | AA- | 5.11 | -0.01 | 0.50 | 5.11 | 4.94 |
| NBN CO | 28-Sep-26 | 4.75 | 5.11 | -0.04 | 0.41 | 5.11 | 4.97 | |
| QANTAS | 12-Oct-26 | 4.75 | NR | 5.94 | 0.00 | 0.45 | 5.94 | 5.77 |
| AUST. PACIFIC AIRPORTS | 4-Nov-26 | 3.75 | BBB+ | 5.49 | 0.00 | 0.48 | 5.49 | 5.31 |
| WSO FINANCE | 1-Dec-26 | 4.00 | A+ | 4.99 | 0.00 | 0.44 | 4.99 | 4.82 |
| WSO FINANCE | 31-Mar-27 | 4.50 | 5.49 | -0.04 | 0.46 | 5.49 | 5.31 | |
| NBN CO | 14-Apr-27 | 4.20 | 5.13 | -0.05 | 0.37 | 5.13 | 5.00 | |
| TELSTRA | 19-Apr-27 | 4.00 | A- | 5.02 | -0.03 | 0.39 | 5.02 | 4.85 |
| PACIFIC NATIONAL FINANCE | 12-May-27 | 5.40 | BBB- | 7.32 | 0.09 | 0.62 | 7.32 | 7.11 |
| LENDLEASE | 27-Oct-27 | 3.40 | 6.72 | 0.03 | 0.49 | 6.72 | 6.54 | |
| FONTERRA | 2-Nov-27 | 4.00 | A- | 5.31 | -0.01 | 0.45 | 5.31 | 5.14 |
| WOOLWORTHS | 15-Nov-27 | 1.85 | BBB | 5.26 | 0.02 | 0.45 | 5.26 | 5.09 |
| AUSTRALIA POST | 8-Dec-27 | 4.99 | 5.19 | -0.01 | 0.39 | 5.19 | 5.02 | |
| MACQUARIE GROUP | 15-Dec-27 | 4.15 | BBB+ | 6.18 | -0.01 | 0.36 | 6.18 | 6.00 |
| NBN CO | 2-Jun-28 | 2.15 | 5.38 | -0.03 | 0.26 | 5.38 | 5.24 | |
| WESFARMERS | 23-Jun-28 | 1.94 | A- | 5.38 | -0.04 | 0.35 | 5.38 | 5.21 |
| AUSNET | 21-Aug-28 | 4.20 | BBB+ | 5.78 | -0.03 | 0.25 | 5.78 | 5.61 |
| QANTAS | 27-Sep-28 | 3.15 | 6.19 | -0.03 | 0.31 | 6.19 | 6.01 | |
| AIRSERVICES AUST | 15-Nov-28 | 5.40 | 4.78 | -0.01 | 0.26 | 4.78 | 4.61 | |
| AUSNET | 31-Jul-29 | 2.60 | BBB+ | 6.04 | -0.01 | 0.27 | 6.04 | 5.87 |
| QANTAS | 27-Nov-29 | 2.95 | 6.37 | -0.03 | 0.19 | 6.37 | 6.20 | |
| WOOLWORTHS | 20-May-30 | 2.80 | BBB | 5.79 | 0.02 | 0.34 | 5.79 | 5.63 |
| QANTAS | 9-Sep-30 | 5.25 | 6.32 | -0.06 | 0.06 | 6.33 | 6.15 | |
| NBN CO | 16-Dec-30 | 2.20 | 5.77 | 0.00 | 0.20 | 5.77 | 5.60 | |
| BRISBANE AIRPORT | 30-Dec-30 | 4.50 | BBB | 6.04 | 0.07 | 0.26 | 6.04 | 5.87 |
| LENDLEASE | 31-Mar-31 | 3.70 | 7.50 | 0.00 | 0.23 | 7.50 | 7.32 | |
| WESFARMERS | 23-Jun-31 | 2.55 | A- | 5.80 | -0.06 | 0.18 | 5.81 | 5.64 |
| WOOLWORTHS | 15-Nov-31 | 2.75 | BBB | 6.03 | 0.00 | 0.26 | 6.03 | 5.86 |