Summary: Corporate bond spreads unchanged on average; swap spreads tighten; iTraxx increases.
Corporate spreads finished the week unchanged on average as corporate bond yields kept pace with the falls of their Commonwealth counterparts. The majority of spreads’ week-on-week changes at the individual level were within a range of -5bps to zero and there no notable exceptions.
One of the two other main measures of corporate risk, swap-to-bond spreads, tightened modestly. The other main measure, credit default swap premiums, increased on average. The Australian credit default swap index, the iTraxx Australia Series 38, finished 7.70 points higher at 83.00 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- | 4.51 | -0.02 | 0.23 | 4.53 | 4.49 |
| SUNCORP-METWAY | 13-Sep-23 | 3.00 | 4.62 | -0.04 | 0.29 | 4.63 | 4.58 | |
| QANTAS | 10-Oct-23 | 4.40 | 5.34 | -0.03 | 0.32 | 5.36 | 5.31 | |
| AUSTRALIA POST | 13-Nov-23 | 5.50 | A+ | 4.74 | -0.04 | 0.34 | 4.76 | 4.69 |
| WESTPAC | 21-Nov-23 | 5.25 | 4.76 | -0.02 | 0.39 | 4.76 | 4.70 | |
| FONTERRA | 26-Feb-24 | 5.50 | A- | 5.06 | -0.01 | 0.56 | 5.06 | 4.98 |
| NATIONAL AUST. BANK | 11-Mar-24 | 5.00 | 4.95 | -0.03 | 0.51 | 4.95 | 4.87 | |
| RABOBANK NEDERLANDS AUST | 11-Apr-24 | 5.50 | A+ | 5.07 | -0.02 | 0.46 | 5.07 | 4.98 |
| COMMONWEALTH BANK | 27-May-24 | 4.75 | 5.04 | -0.01 | 0.52 | 5.04 | 4.94 | |
| AURIZON NETWORK | 21-Jun-24 | 4.00 | BBB+ | 5.58 | -0.01 | 0.58 | 5.58 | 5.48 |
| MACQUARIE BANK | 7-Aug-24 | 1.75 | A+ | 5.22 | -0.04 | 0.58 | 5.23 | 5.12 |
| WELLS FARGO | 27-Aug-24 | 4.75 | BBB+ | 5.59 | 0.01 | 0.47 | 5.59 | 5.48 |
| WOOLWORTHS | 20-May-25 | 1.85 | BBB | 5.16 | 0.00 | 0.67 | 5.16 | 5.06 |
| UNIVERSITY OF SYDNEY | 28-Aug-25 | 3.75 | 5.01 | -0.02 | 0.64 | 5.01 | 4.91 | |
| NBN CO | 3-Dec-25 | 1.00 | 5.29 | -0.02 | 0.71 | 5.29 | 5.19 | |
| APPLE | 10-Jun-26 | 3.60 | AA+ | 4.92 | 0.01 | 0.64 | 4.92 | 4.83 |
| COMMONWEALTH BANK | 11-Jun-26 | 4.20 | AA- | 5.14 | 0.01 | 0.61 | 5.14 | 5.05 |
| ANZ BANK | 22-Jul-26 | 4.00 | AA- | 5.12 | 0.01 | 0.60 | 5.12 | 5.03 |
| NBN CO | 28-Sep-26 | 4.75 | 5.15 | -0.08 | 0.54 | 5.19 | 5.07 | |
| QANTAS | 12-Oct-26 | 4.75 | NR | 5.95 | -0.03 | 0.55 | 5.95 | 5.86 |
| AUST. PACIFIC AIRPORTS | 4-Nov-26 | 3.75 | BBB+ | 5.49 | 0.00 | 0.58 | 5.49 | 5.41 |
| WSO FINANCE | 1-Dec-26 | 4.00 | A+ | 4.99 | -0.05 | 0.54 | 5.01 | 4.92 |
| WSO FINANCE | 31-Mar-27 | 4.50 | 5.52 | 0.00 | 0.60 | 5.52 | 5.45 | |
| NBN CO | 14-Apr-27 | 4.20 | 5.18 | -0.16 | 0.45 | 5.25 | 5.11 | |
| TELSTRA | 19-Apr-27 | 4.00 | A- | 5.05 | 0.00 | 0.51 | 5.05 | 4.98 |
| PACIFIC NATIONAL FINANCE | 12-May-27 | 5.40 | BBB- | 7.23 | -0.01 | 0.63 | 7.23 | 7.15 |
| LENDLEASE | 27-Oct-27 | 3.40 | 6.69 | -0.01 | 0.54 | 6.69 | 6.63 | |
| FONTERRA | 2-Nov-27 | 4.00 | A- | 5.32 | -0.01 | 0.56 | 5.32 | 5.26 |
| WOOLWORTHS | 15-Nov-27 | 1.85 | BBB | 5.23 | -0.01 | 0.53 | 5.23 | 5.18 |
| AUSTRALIA POST | 8-Dec-27 | 4.99 | 5.20 | -0.04 | 0.51 | 5.20 | 5.15 | |
| MACQUARIE GROUP | 15-Dec-27 | 4.15 | BBB+ | 6.19 | -0.01 | 0.45 | 6.19 | 6.13 |
| NBN CO | 2-Jun-28 | 2.15 | 5.41 | -0.11 | 0.40 | 5.43 | 5.37 | |
| WESFARMERS | 23-Jun-28 | 1.94 | A- | 5.42 | -0.04 | 0.50 | 5.42 | 5.38 |
| AUSNET | 21-Aug-28 | 4.20 | BBB+ | 5.81 | -0.03 | 0.37 | 5.82 | 5.77 |
| QANTAS | 27-Sep-28 | 3.15 | 6.22 | -0.06 | 0.45 | 6.25 | 6.17 | |
| AIRSERVICES AUST | 15-Nov-28 | 5.40 | 4.79 | -0.06 | 0.37 | 4.85 | 4.76 | |
| AUSNET | 31-Jul-29 | 2.60 | BBB+ | 6.05 | -0.05 | 0.37 | 6.08 | 6.02 |
| QANTAS | 27-Nov-29 | 2.95 | 6.40 | -0.09 | 0.34 | 6.47 | 6.37 | |
| WOOLWORTHS | 20-May-30 | 2.80 | BBB | 5.78 | -0.04 | 0.43 | 5.80 | 5.75 |
| QANTAS | 9-Sep-30 | 5.25 | 6.38 | -0.14 | 0.23 | 6.50 | 6.36 | |
| NBN CO | 16-Dec-30 | 2.20 | 5.77 | -0.05 | 0.31 | 5.80 | 5.75 | |
| BRISBANE AIRPORT | 30-Dec-30 | 4.50 | BBB | 5.97 | -0.06 | 0.26 | 6.00 | 5.95 |
| LENDLEASE | 31-Mar-31 | 3.70 | 7.49 | -0.06 | 0.29 | 7.53 | 7.47 | |
| WESFARMERS | 23-Jun-31 | 2.55 | A- | 5.86 | -0.06 | 0.34 | 5.90 | 5.84 |
| WOOLWORTHS | 15-Nov-31 | 2.75 | BBB | 6.03 | -0.06 | 0.37 | 6.07 | 6.01 |