Summary: Corporate bond spreads 5bps wider on average; swap spreads wider; iTraxx lower.
Corporate spreads finished the week about 5bps wider on average as corporate bond yields generally outpaced 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 +8bps and the only exception worthy of mention was Asciano’s May 2027s (spread: 300bps, +11bps).
One of the two other main measures of corporate risk, swap-to-bond spreads, widened. The other main measure, credit default swap premiums, declined. The Australian credit default swap index, the iTraxx Australia Series 37, finished 4.50 points lower at 83.50 points.
AUSTRALIAN CORPORATE BONDS
| ISSUER | MATURITY | COUPON (%) | RATING | CLOSING YIELD | Δ WEEK | Δ MONTH | WEEK HIGH | WEEK LOW |
|---|---|---|---|---|---|---|---|---|
| ANZ | 16-Aug-23 | 5.00 | AA- | 4.05 | 0.06 | -0.03 | 4.07 | 4.04 |
| QANTAS | 10-Oct-23 | 4.40 | 4.70 | 0.07 | 0.02 | 4.70 | 4.66 | |
| AUSTPOST | 13-Nov-23 | 5.50 | A+ | 4.07 | 0.09 | 0.02 | 4.07 | 4.02 |
| WESTPAC | 21-Nov-23 | 5.25 | AA- | 4.09 | 0.09 | 0.03 | 4.09 | 4.03 |
| FONTERRA | 26-Feb-24 | 5.50 | A- | 4.13 | 0.12 | 0.03 | 4.13 | 4.05 |
| NAB | 11-Mar-24 | 5.00 | AA- | 4.13 | 0.11 | -0.06 | 4.14 | 4.06 |
| RABO NL AU | 11-Apr-24 | 5.50 | A+ | 4.30 | 0.13 | 0.04 | 4.30 | 4.21 |
| CBA | 27-May-24 | 4.75 | 4.11 | 0.13 | -0.01 | 4.12 | 4.03 | |
| AUSNET | 21-Jun-24 | 4.00 | BBB+ | 4.52 | 0.15 | 0.03 | 4.52 | 4.42 |
| MACQUARIE | 7-Aug-24 | 1.75 | A+ | 4.36 | 0.13 | -0.01 | 4.36 | 4.25 |
| WFC | 27-Aug-24 | 4.75 | 4.79 | 0.16 | 0.00 | 4.79 | 4.69 | |
| UNISYD | 28-Aug-25 | 3.75 | 4.00 | 0.17 | -0.12 | 4.00 | 3.88 | |
| APPLE | 10-Jun-26 | 3.60 | 3.94 | 0.16 | -0.09 | 3.94 | 3.83 | |
| CBA | 11-Jun-26 | 4.20 | 4.23 | 0.17 | -0.11 | 4.23 | 4.13 | |
| ANZ | 22-Jul-26 | 4.00 | 4.23 | 0.16 | -0.10 | 4.23 | 4.14 | |
| QANTAS | 12-Oct-26 | 4.75 | 5.07 | 0.16 | -0.15 | 5.07 | 4.96 | |
| AUSPAC AIRPORT | 4-Nov-26 | 3.75 | BBB+ | 4.55 | 0.16 | -0.11 | 4.55 | 4.45 |
| AUSTPOST | 1-Dec-26 | 4.00 | A+ | 4.13 | 0.16 | -0.16 | 4.13 | 4.02 |
| WSO FINANCE | 31-Mar-27 | 4.50 | 4.52 | 0.16 | -0.12 | 4.52 | 4.41 | |
| TELSTRA | 19-Apr-27 | 4.00 | A | 4.24 | 0.16 | -0.14 | 4.24 | 4.12 |
| ASCIANO | 12-May-27 | 5.40 | BBB- | 5.98 | 0.24 | 0.09 | 5.98 | 5.79 |
| FONTERRA | 2-Nov-27 | 4.00 | A- | 4.46 | 0.17 | -0.15 | 4.46 | 4.34 |
| MACQUARIE | 15-Dec-27 | 4.15 | BBB+ | 5.50 | 0.17 | 0.00 | 5.50 | 5.37 |
| AUSNET | 21-Aug-28 | 4.20 | A- | 5.09 | 0.19 | -0.12 | 5.09 | 4.96 |
| AUSNET | 31-Jul-29 | 2.60 | A- | 5.35 | 0.20 | -0.06 | 5.35 | 5.22 |