Summary: Corporate bond spreads 2bps wider on average; swap spreads slightly tighter; iTraxx decreases.
Corporate spreads finished the week about 2bps wider on average as corporate bond yields outpaced the rises of most of their Commonwealth counterparts. The majority of spreads’ week-on-week changes at the individual level were within a range of -8bps to +5bps and the exceptions were limited to some lines close to their respective maturity dates.
One of the two other main measures of corporate risk, swap-to-bond spreads, tightened slightly. The other main measure, credit default swap premiums, decreased on average. The Australian credit default swap index, the iTraxx Australia Series 38, finished 3.0 points lower at 87.00 points.
In ratings news, S&P upgraded Aristocrat Leisure’s senior debt from BB+ to BBB-.
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- | 4.28 | 0.04 | 0.23 | 4.28 | 4.24 |
| SUNCORP-METWAY | 13-Sep-23 | 3.00 | 4.33 | 0.07 | 0.21 | 4.33 | 4.26 | |
| QANTAS | 10-Oct-23 | 4.40 | 5.02 | 0.09 | 0.33 | 5.02 | 4.94 | |
| AUSTRALIA POST | 13-Nov-23 | 5.50 | A+ | 4.40 | 0.10 | 0.32 | 4.40 | 4.30 |
| WESTPAC | 21-Nov-23 | 5.25 | 4.37 | 0.11 | 0.28 | 4.37 | 4.26 | |
| FONTERRA | 26-Feb-24 | 5.50 | A- | 4.50 | 0.16 | 0.37 | 4.50 | 4.34 |
| NATIONAL AUST. BANK | 11-Mar-24 | 5.00 | 4.44 | 0.17 | 0.31 | 4.44 | 4.27 | |
| RABOBANK NEDERLANDS AUST | 11-Apr-24 | 5.50 | A+ | 4.61 | 0.21 | 0.32 | 4.61 | 4.41 |
| COMMONWEALTH BANK | 27-May-24 | 4.75 | 4.52 | 0.23 | 0.42 | 4.52 | 4.30 | |
| AURIZON NETWORK | 21-Jun-24 | 4.00 | BBB+ | 5.00 | 0.26 | 0.48 | 5.00 | 4.74 |
| MACQUARIE BANK | 7-Aug-24 | 1.75 | A+ | 4.64 | 0.26 | 0.28 | 4.64 | 4.38 |
| WELLS FARGO | 27-Aug-24 | 4.75 | BBB+ | 5.12 | 0.26 | 0.33 | 5.12 | 4.85 |
| WOOLWORTHS | 20-May-25 | 1.85 | BBB | 4.49 | 0.28 | 0.36 | 4.49 | 4.22 |
| UNIVERSITY OF SYDNEY | 28-Aug-25 | 3.75 | 4.37 | 0.32 | 0.38 | 4.37 | 4.06 | |
| NBN CO | 3-Dec-25 | 1.00 | 4.58 | 0.24 | 0.32 | 4.58 | 4.34 | |
| APPLE | 10-Jun-26 | 3.60 | AA+ | 4.28 | 0.33 | 0.35 | 4.28 | 3.95 |
| COMMONWEALTH BANK | 11-Jun-26 | 4.20 | AA- | 4.53 | 0.30 | 0.30 | 4.53 | 4.23 |
| ANZ BANK | 22-Jul-26 | 4.00 | AA- | 4.52 | 0.31 | 0.29 | 4.52 | 4.22 |
| NBN CO | 28-Sep-26 | 4.75 | 4.61 | 0.36 | 0.37 | 4.61 | 4.25 | |
| QANTAS | 12-Oct-26 | 4.75 | NR | 5.40 | 0.33 | 0.33 | 5.40 | 5.07 |
| AUST. PACIFIC AIRPORTS | 4-Nov-26 | 3.75 | BBB+ | 4.91 | 0.33 | 0.36 | 4.91 | 4.59 |
| WSO FINANCE | 1-Dec-26 | 4.00 | A+ | 4.45 | 0.32 | 0.32 | 4.45 | 4.13 |
| WSO FINANCE | 31-Mar-27 | 4.50 | 4.93 | 0.37 | 0.41 | 4.93 | 4.55 | |
| NBN CO | 14-Apr-27 | 4.20 | 4.73 | 0.37 | 0.37 | 4.73 | 4.36 | |
| TELSTRA | 19-Apr-27 | 4.00 | A- | 4.53 | 0.32 | 0.30 | 4.53 | 4.22 |
| PACIFIC NATIONAL FINANCE | 12-May-27 | 5.40 | BBB- | 6.60 | 0.33 | 0.61 | 6.60 | 6.26 |
| LENDLEASE | 27-Oct-27 | 3.40 | 6.15 | 0.33 | 0.44 | 6.15 | 5.83 | |
| FONTERRA | 2-Nov-27 | 4.00 | A- | 4.76 | 0.32 | 0.30 | 4.76 | 4.45 |
| WOOLWORTHS | 15-Nov-27 | 1.85 | BBB | 4.70 | 0.32 | 0.30 | 4.70 | 4.39 |
| AUSTRALIA POST | 8-Dec-27 | 4.99 | 4.70 | 0.32 | 0.28 | 4.70 | 4.38 | |
| MACQUARIE GROUP | 15-Dec-27 | 4.15 | BBB+ | 5.73 | 0.32 | 0.23 | 5.73 | 5.41 |
| NBN CO | 2-Jun-28 | 2.15 | 5.02 | 0.31 | 0.31 | 5.02 | 4.70 | |
| WESFARMERS | 23-Jun-28 | 1.94 | A- | 4.93 | 0.35 | 0.29 | 4.93 | 4.58 |
| AUSNET | 21-Aug-28 | 4.20 | BBB+ | 5.44 | 0.31 | 0.36 | 5.44 | 5.13 |
| QANTAS | 27-Sep-28 | 3.15 | 5.77 | 0.32 | 0.28 | 5.77 | 5.45 | |
| AIRSERVICES AUST | 15-Nov-28 | 5.40 | 4.42 | 0.30 | 0.25 | 4.42 | 4.11 | |
| AUSNET | 31-Jul-29 | 2.60 | BBB+ | 5.69 | 0.31 | 0.34 | 5.69 | 5.38 |
| QANTAS | 27-Nov-29 | 2.95 | 6.06 | 0.19 | 0.17 | 6.06 | 5.81 | |
| WOOLWORTHS | 20-May-30 | 2.80 | BBB | 5.35 | 0.20 | 0.13 | 5.35 | 5.15 |
| QANTAS | 9-Sep-30 | 5.25 | 6.15 | 0.39 | 0.33 | 6.15 | 5.77 | |
| NBN CO | 16-Dec-30 | 2.20 | 5.46 | 0.30 | 0.24 | 5.46 | 5.15 | |
| BRISBANE AIRPORT | 30-Dec-30 | 4.50 | BBB | 5.70 | 0.31 | 0.29 | 5.70 | 5.40 |
| LENDLEASE | 31-Mar-31 | 3.70 | 7.20 | 0.32 | 0.37 | 7.20 | 6.88 | |
| WESFARMERS | 23-Jun-31 | 2.55 | A- | 5.52 | 0.30 | 0.24 | 5.52 | 5.22 |
| WOOLWORTHS | 15-Nov-31 | 2.75 | BBB | 5.66 | 0.25 | 0.23 | 5.66 | 5.41 |