Corporate

Summary: Corporate bond spreads 2bps wider on average; swap spreads wider; iTraxx decreases.

Corporate spreads finished the week about 2bps wider on average as corporate bond yields lagged the falls of their Commonwealth counterparts. The majority of spreads’ week-on-week changes at the individual level were within a range of -1bp to +2bps and the exceptions were not particularly noteworthy.

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 6 points lower at 78.25 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-	4.39	0.12	0.37	4.39	4.28
SUNCORP-METWAY	13-Sep-23	3.00		4.48	0.18	0.41	4.48	4.32
QANTAS	10-Oct-23	4.40		5.15	0.14	0.44	5.15	5.02
AUSTRALIA POST	13-Nov-23	5.50	A+	4.54	0.13	0.43	4.54	4.42
WESTPAC	21-Nov-23	5.25		4.51	0.13	0.44	4.51	4.39
FONTERRA	26-Feb-24	5.50	A-	4.66	0.13	0.48	4.66	4.54
NATIONAL AUST. BANK	11-Mar-24	5.00		4.60	0.14	0.46	4.60	4.46
RABOBANK NEDERLANDS AUST	11-Apr-24	5.50	A+	4.75	0.14	0.46	4.75	4.62
COMMONWEALTH BANK	27-May-24	4.75		4.66	0.11	0.53	4.66	4.55
AURIZON NETWORK	21-Jun-24	4.00	BBB+	5.15	0.12	0.58	5.15	5.03
MACQUARIE BANK	7-Aug-24	1.75	A+	4.79	0.08	0.46	4.79	4.69
WELLS FARGO	27-Aug-24	4.75	BBB+	5.19	0.02	0.42	5.19	5.10
WOOLWORTHS	20-May-25	1.85	BBB	4.61	0.04	0.42	4.61	4.55
UNIVERSITY OF SYDNEY	28-Aug-25	3.75		4.48	0.03	0.43	4.48	4.43
NBN CO	3-Dec-25	1.00		4.68	0.01	0.34	4.68	4.63
APPLE	10-Jun-26	3.60	AA+	4.37	0.00	0.41	4.37	4.32
COMMONWEALTH BANK	11-Jun-26	4.20	AA-	4.61	0.00	0.41	4.61	4.56
ANZ BANK	22-Jul-26	4.00	AA-	4.60	0.00	0.39	4.60	4.55
NBN CO	28-Sep-26	4.75		4.70	0.00	0.39	4.70	4.64
QANTAS	12-Oct-26	4.75	NR	5.49	-0.01	0.40	5.49	5.43
AUST. PACIFIC AIRPORTS	4-Nov-26	3.75	BBB+	5.00	-0.01	0.42	5.00	4.94
WSO FINANCE	1-Dec-26	4.00	A+	4.54	-0.01	0.39	4.54	4.48
WSO FINANCE	31-Mar-27	4.50		5.01	-0.02	0.42	5.01	4.95
NBN CO	14-Apr-27	4.20		4.74	-0.02	0.39	4.74	4.69
TELSTRA	19-Apr-27	4.00	A-	4.61	-0.02	0.38	4.61	4.56
PACIFIC NATIONAL FINANCE	12-May-27	5.40	BBB-	6.73	0.03	0.42	6.73	6.62
LENDLEASE	27-Oct-27	3.40		6.19	-0.04	0.49	6.19	6.14
FONTERRA	2-Nov-27	4.00	A-	4.83	-0.03	0.38	4.83	4.78
WOOLWORTHS	15-Nov-27	1.85	BBB	4.77	-0.04	0.32	4.78	4.72
AUSTRALIA POST	8-Dec-27	4.99		4.77	-0.03	0.36	4.77	4.72
MACQUARIE GROUP	15-Dec-27	4.15	BBB+	5.78	-0.04	0.32	5.78	5.73
NBN CO	2-Jun-28	2.15		5.08	-0.05	0.36	5.09	5.03
WESFARMERS	23-Jun-28	1.94	A-	4.99	-0.05	0.37	5.00	4.94
AUSNET	21-Aug-28	4.20	BBB+	5.48	-0.05	0.41	5.49	5.43
QANTAS	27-Sep-28	3.15		5.83	-0.05	0.34	5.84	5.78
AIRSERVICES AUST	15-Nov-28	5.40		4.48	-0.05	0.33	4.49	4.43
AUSNET	31-Jul-29	2.60	BBB+	5.72	-0.06	0.37	5.73	5.67
QANTAS	27-Nov-29	2.95		6.11	-0.06	0.20	6.13	6.06
WOOLWORTHS	20-May-30	2.80	BBB	5.39	-0.07	0.16	5.42	5.35
QANTAS	9-Sep-30	5.25		6.20	-0.06	0.40	6.22	6.15
NBN CO	16-Dec-30	2.20		5.50	-0.07	0.31	5.52	5.45
BRISBANE AIRPORT	30-Dec-30	4.50	BBB	5.71	-0.07	0.32	5.74	5.67
LENDLEASE	31-Mar-31	3.70		7.19	-0.07	0.39	7.22	7.14
WESFARMERS	23-Jun-31	2.55	A-	5.56	-0.07	0.30	5.59	5.51
WOOLWORTHS	15-Nov-31	2.75	BBB	5.69	-0.08	0.24	5.72	5.65