Summary: Corporate bond spreads 7bps tighter on average; swap spreads narrower; iTraxx declines.
Corporate spreads finished the week about 7bps 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 -13bps to -3bps and the exceptions were not particularly noteworthy or were within six months of their respective maturities.
One of the two other main measures of corporate risk, swap-to-bond spreads, also narrowed. The other main measure, credit default swap premiums, declined on average. The Australian credit default swap index, the iTraxx Australia Series 38, finished 0.25 points lower at 78.00 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- | 4.46 | 0.07 | 0.24 | 4.47 | 4.37 |
| SUNCORP-METWAY | 13-Sep-23 | 3.00 | 4.55 | 0.07 | 0.30 | 4.56 | 4.45 | |
| QANTAS | 10-Oct-23 | 4.40 | 5.26 | 0.11 | 0.36 | 5.32 | 5.13 | |
| AUSTRALIA POST | 13-Nov-23 | 5.50 | A+ | 4.65 | 0.11 | 0.39 | 4.68 | 4.54 |
| WESTPAC | 21-Nov-23 | 5.25 | 4.65 | 0.14 | 0.40 | 4.69 | 4.52 | |
| FONTERRA | 26-Feb-24 | 5.50 | A- | 4.92 | 0.26 | 0.62 | 4.95 | 4.69 |
| NATIONAL AUST. BANK | 11-Mar-24 | 5.00 | 4.84 | 0.24 | 0.59 | 4.86 | 4.62 | |
| RABOBANK NEDERLANDS AUST | 11-Apr-24 | 5.50 | A+ | 5.00 | 0.26 | 0.61 | 5.03 | 4.78 |
| COMMONWEALTH BANK | 27-May-24 | 4.75 | 4.88 | 0.22 | 0.62 | 4.90 | 4.71 | |
| AURIZON NETWORK | 21-Jun-24 | 4.00 | BBB+ | 5.41 | 0.26 | 0.76 | 5.49 | 5.20 |
| MACQUARIE BANK | 7-Aug-24 | 1.75 | A+ | 5.09 | 0.30 | 0.72 | 5.12 | 4.86 |
| WELLS FARGO | 27-Aug-24 | 4.75 | BBB+ | 5.42 | 0.23 | 0.60 | 5.45 | 5.26 |
| WOOLWORTHS | 20-May-25 | 1.85 | BBB | 4.95 | 0.34 | 0.76 | 5.00 | 4.72 |
| UNIVERSITY OF SYDNEY | 28-Aug-25 | 3.75 | 4.82 | 0.34 | 0.79 | 4.88 | 4.60 | |
| NBN CO | 3-Dec-25 | 1.00 | 5.10 | 0.41 | 0.78 | 5.10 | 4.80 | |
| APPLE | 10-Jun-26 | 3.60 | AA+ | 4.71 | 0.34 | 0.78 | 4.78 | 4.50 |
| COMMONWEALTH BANK | 11-Jun-26 | 4.20 | AA- | 4.94 | 0.33 | 0.73 | 5.00 | 4.74 |
| ANZ BANK | 22-Jul-26 | 4.00 | AA- | 4.95 | 0.34 | 0.74 | 5.00 | 4.73 |
| NBN CO | 28-Sep-26 | 4.75 | 5.04 | 0.34 | 0.76 | 5.10 | 4.82 | |
| QANTAS | 12-Oct-26 | 4.75 | NR | 5.83 | 0.35 | 0.78 | 5.90 | 5.62 |
| AUST. PACIFIC AIRPORTS | 4-Nov-26 | 3.75 | BBB+ | 5.35 | 0.35 | 0.81 | 5.42 | 5.13 |
| WSO FINANCE | 1-Dec-26 | 4.00 | A+ | 4.88 | 0.34 | 0.76 | 4.94 | 4.67 |
| WSO FINANCE | 31-Mar-27 | 4.50 | 5.34 | 0.34 | 0.79 | 5.41 | 5.14 | |
| NBN CO | 14-Apr-27 | 4.20 | 5.10 | 0.35 | 0.72 | 5.16 | 4.87 | |
| TELSTRA | 19-Apr-27 | 4.00 | A- | 4.87 | 0.26 | 0.66 | 4.97 | 4.70 |
| PACIFIC NATIONAL FINANCE | 12-May-27 | 5.40 | BBB- | 7.08 | 0.35 | 0.82 | 7.15 | 6.87 |
| LENDLEASE | 27-Oct-27 | 3.40 | 6.53 | 0.34 | 0.81 | 6.59 | 6.33 | |
| FONTERRA | 2-Nov-27 | 4.00 | A- | 5.16 | 0.33 | 0.72 | 5.22 | 4.96 |
| WOOLWORTHS | 15-Nov-27 | 1.85 | BBB | 5.10 | 0.33 | 0.70 | 5.16 | 4.90 |
| AUSTRALIA POST | 8-Dec-27 | 4.99 | 5.10 | 0.33 | 0.71 | 5.16 | 4.90 | |
| MACQUARIE GROUP | 15-Dec-27 | 4.15 | BBB+ | 6.04 | 0.25 | 0.63 | 6.11 | 5.86 |
| NBN CO | 2-Jun-28 | 2.15 | 5.36 | 0.29 | 0.65 | 5.49 | 5.21 | |
| WESFARMERS | 23-Jun-28 | 1.94 | A- | 5.31 | 0.32 | 0.71 | 5.38 | 5.12 |
| AUSNET | 21-Aug-28 | 4.20 | BBB+ | 5.74 | 0.26 | 0.69 | 5.87 | 5.62 |
| QANTAS | 27-Sep-28 | 3.15 | 6.15 | 0.32 | 0.68 | 6.22 | 5.97 | |
| AIRSERVICES AUST | 15-Nov-28 | 5.40 | 4.79 | 0.32 | 0.66 | 4.86 | 4.61 | |
| AUSNET | 31-Jul-29 | 2.60 | BBB+ | 5.95 | 0.23 | 0.62 | 6.10 | 5.86 |
| QANTAS | 27-Nov-29 | 2.95 | 6.42 | 0.31 | 0.52 | 6.49 | 6.25 | |
| WOOLWORTHS | 20-May-30 | 2.80 | BBB | 5.69 | 0.29 | 0.51 | 5.76 | 5.53 |
| QANTAS | 9-Sep-30 | 5.25 | 6.44 | 0.24 | 0.65 | 6.58 | 6.34 | |
| NBN CO | 16-Dec-30 | 2.20 | 5.70 | 0.20 | 0.51 | 5.83 | 5.57 | |
| BRISBANE AIRPORT | 30-Dec-30 | 4.50 | BBB | 5.90 | 0.19 | 0.52 | 6.08 | 5.85 |
| LENDLEASE | 31-Mar-31 | 3.70 | 7.43 | 0.24 | 0.63 | 7.51 | 7.26 | |
| WESFARMERS | 23-Jun-31 | 2.55 | A- | 5.80 | 0.24 | 0.55 | 5.88 | 5.65 |
| WOOLWORTHS | 15-Nov-31 | 2.75 | BBB | 5.97 | 0.28 | 0.53 | 6.05 | 5.82 |