Summary: Corporate bond spreads 3bps tighter on average; swap spreads narrower; iTraxx decreases.
Corporate spreads finished the week about 3bps tighter 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 -6bps to +2bps and the only notable exception were Ausnet’s August 2028s (spread: 190bps, -12bps).
One of the two other main measures of corporate risk, swap-to-bond spreads, also narrowed. The other main measure, credit default swap premiums, decreased a little on average. The Australian credit default swap index, the iTraxx Australia Series 38, finished 2.70 points lower at 75.30 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- | 4.53 | 0.07 | 0.29 | 4.53 | 4.46 |
| SUNCORP-METWAY | 13-Sep-23 | 3.00 | 4.66 | 0.11 | 0.40 | 4.66 | 4.55 | |
| QANTAS | 10-Oct-23 | 4.40 | 5.37 | 0.11 | 0.43 | 5.37 | 5.27 | |
| AUSTRALIA POST | 13-Nov-23 | 5.50 | A+ | 4.78 | 0.14 | 0.48 | 4.78 | 4.65 |
| WESTPAC | 21-Nov-23 | 5.25 | 4.78 | 0.13 | 0.52 | 4.78 | 4.66 | |
| FONTERRA | 26-Feb-24 | 5.50 | A- | 5.08 | 0.15 | 0.74 | 5.08 | 4.92 |
| NATIONAL AUST. BANK | 11-Mar-24 | 5.00 | 4.99 | 0.15 | 0.72 | 4.99 | 4.84 | |
| RABOBANK NEDERLANDS AUST | 11-Apr-24 | 5.50 | A+ | 5.09 | 0.09 | 0.69 | 5.10 | 4.96 |
| COMMONWEALTH BANK | 27-May-24 | 4.75 | 5.05 | 0.17 | 0.75 | 5.05 | 4.88 | |
| AURIZON NETWORK | 21-Jun-24 | 4.00 | BBB+ | 5.59 | 0.19 | 0.85 | 5.59 | 5.42 |
| MACQUARIE BANK | 7-Aug-24 | 1.75 | A+ | 5.26 | 0.18 | 0.88 | 5.26 | 5.10 |
| WELLS FARGO | 27-Aug-24 | 4.75 | BBB+ | 5.58 | 0.16 | 0.73 | 5.58 | 5.43 |
| WOOLWORTHS | 20-May-25 | 1.85 | BBB | 5.16 | 0.21 | 0.94 | 5.16 | 4.97 |
| UNIVERSITY OF SYDNEY | 28-Aug-25 | 3.75 | 5.03 | 0.21 | 0.98 | 5.03 | 4.85 | |
| NBN CO | 3-Dec-25 | 1.00 | 5.31 | 0.21 | 0.97 | 5.31 | 5.12 | |
| APPLE | 10-Jun-26 | 3.60 | AA+ | 4.91 | 0.20 | 0.96 | 4.91 | 4.73 |
| COMMONWEALTH BANK | 11-Jun-26 | 4.20 | AA- | 5.13 | 0.19 | 0.90 | 5.13 | 4.96 |
| ANZ BANK | 22-Jul-26 | 4.00 | AA- | 5.11 | 0.17 | 0.90 | 5.11 | 4.96 |
| NBN CO | 28-Sep-26 | 4.75 | 5.23 | 0.19 | 0.98 | 5.23 | 5.05 | |
| QANTAS | 12-Oct-26 | 4.75 | NR | 5.98 | 0.14 | 0.91 | 5.98 | 5.79 |
| AUST. PACIFIC AIRPORTS | 4-Nov-26 | 3.75 | BBB+ | 5.49 | 0.14 | 0.90 | 5.53 | 5.37 |
| WSO FINANCE | 1-Dec-26 | 4.00 | A+ | 5.05 | 0.17 | 0.92 | 5.05 | 4.89 |
| WSO FINANCE | 31-Mar-27 | 4.50 | 5.53 | 0.19 | 0.97 | 5.53 | 5.36 | |
| NBN CO | 14-Apr-27 | 4.20 | 5.34 | 0.25 | 0.99 | 5.34 | 5.17 | |
| TELSTRA | 19-Apr-27 | 4.00 | A- | 5.05 | 0.18 | 0.84 | 5.05 | 4.89 |
| PACIFIC NATIONAL FINANCE | 12-May-27 | 5.40 | BBB- | 7.23 | 0.16 | 0.97 | 7.23 | 7.09 |
| LENDLEASE | 27-Oct-27 | 3.40 | 6.70 | 0.18 | 0.88 | 6.70 | 6.54 | |
| FONTERRA | 2-Nov-27 | 4.00 | A- | 5.33 | 0.17 | 0.88 | 5.33 | 5.17 |
| WOOLWORTHS | 15-Nov-27 | 1.85 | BBB | 5.25 | 0.15 | 0.86 | 5.25 | 5.11 |
| AUSTRALIA POST | 8-Dec-27 | 4.99 | 5.25 | 0.15 | 0.87 | 5.25 | 5.12 | |
| MACQUARIE GROUP | 15-Dec-27 | 4.15 | BBB+ | 6.20 | 0.16 | 0.79 | 6.20 | 6.05 |
| NBN CO | 2-Jun-28 | 2.15 | 5.53 | 0.16 | 0.82 | 5.53 | 5.38 | |
| WESFARMERS | 23-Jun-28 | 1.94 | A- | 5.47 | 0.16 | 0.89 | 5.47 | 5.32 |
| AUSNET | 21-Aug-28 | 4.20 | BBB+ | 5.85 | 0.11 | 0.72 | 5.88 | 5.76 |
| QANTAS | 27-Sep-28 | 3.15 | 6.28 | 0.13 | 0.83 | 6.28 | 6.13 | |
| AIRSERVICES AUST | 15-Nov-28 | 5.40 | 4.85 | 0.06 | 0.74 | 4.85 | 4.77 | |
| AUSNET | 31-Jul-29 | 2.60 | BBB+ | 6.10 | 0.15 | 0.72 | 6.10 | 5.96 |
| QANTAS | 27-Nov-29 | 2.95 | 6.49 | 0.07 | 0.62 | 6.49 | 6.39 | |
| WOOLWORTHS | 20-May-30 | 2.80 | BBB | 5.82 | 0.13 | 0.67 | 5.82 | 5.70 |
| QANTAS | 9-Sep-30 | 5.25 | 6.52 | 0.08 | 0.76 | 6.52 | 6.39 | |
| NBN CO | 16-Dec-30 | 2.20 | 5.82 | 0.12 | 0.67 | 5.82 | 5.71 | |
| BRISBANE AIRPORT | 30-Dec-30 | 4.50 | BBB | 6.03 | 0.13 | 0.63 | 6.03 | 5.91 |
| LENDLEASE | 31-Mar-31 | 3.70 | 7.55 | 0.13 | 0.68 | 7.55 | 7.43 | |
| WESFARMERS | 23-Jun-31 | 2.55 | A- | 5.92 | 0.12 | 0.70 | 5.92 | 5.81 |
| WOOLWORTHS | 15-Nov-31 | 2.75 | BBB | 6.09 | 0.11 | 0.68 | 6.09 | 5.98 |