Summary: Corporate bond spreads 4bps tighter on average; swap spreads widen; iTraxx down 7 points.
Corporate spreads finished the week about 4bps tighter on average as corporate 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 particularly notable exception came from Asciano’s May 2027s (spread: 260bps, +7bps).
One of the two other main measures of corporate risk, swap-to-bond spreads widened. However, another measure of corporate risk, credit default swap premiums, decreased. The Australian credit default swap index, the iTraxx Australia Series 37, finished 7.00 points lower at 82.00 points.
| ISSUER | MATURITY | COUPON (%) | RATING | CLOSING YIELD | Δ WEEK | Δ MONTH | WEEK HIGH | WEEK LOW |
|---|---|---|---|---|---|---|---|---|
| ANZ | 16-Aug-23 | 5.00 | AA- | 4.08 | -0.03 | 0.08 | 4.14 | 4.07 |
| Qantas | 10-Oct-23 | 4.40 | BB+ | 4.83 | 0.05 | 0.20 | 4.85 | 4.77 |
| Australia Post | 13-Nov-23 | 5.50 | A+ | 4.38 | 0.03 | 0.31 | 4.40 | 4.34 |
| Westpac | 21-Nov-23 | 4.40 | AA- | 4.27 | -0.01 | 0.13 | 4.33 | 4.26 |
| Fonterra | 26-Feb-24 | 5.50 | A- | 4.55 | -0.03 | 0.24 | 4.61 | 4.53 |
| NAB | 11-Mar-24 | 5.00 | AA- | 4.47 | -0.02 | 0.24 | 4.55 | 4.44 |
| Rabobank Nederland (Aust) | 11-Apr-24 | 5.50 | A+ | 4.65 | 0.00 | 0.29 | 4.71 | 4.62 |
| CBA | 27-May-24 | 4.75 | AA- | 4.53 | -0.05 | 0.23 | 4.60 | 4.50 |
| AusNet | 21-Jun-24 | 4.00 | BBB+ | 5.00 | 0.01 | 0.35 | 5.06 | 4.96 |
| Macquarie Bank | 7-Aug-24 | 1.75 | A+ | 4.75 | -0.01 | 0.23 | 4.78 | 4.69 |
| Wells Fargo | 27-Aug-24 | 4.75 | A+ | 5.09 | -0.02 | 0.24 | 5.18 | 5.03 |
| Woolworths | 20-May-25 | 1.85 | BBB | 4.61 | 0.02 | 0.25 | 4.65 | 4.55 |
| University of Sydney | 28-Aug-25 | 3.75 | Aa1 | 4.58 | 0.05 | 0.34 | 4.60 | 4.50 |
| NBN Co | 3-Dec-25 | 1.00 | 4.80 | 0.06 | 0.34 | 4.82 | 4.70 | |
| Apple Inc | 10-Jun-26 | 3.60 | AA+ | 4.48 | 0.04 | 0.38 | 4.51 | 4.38 |
| CBA | 11-Jun-26 | 4.20 | AA- | 4.72 | -0.03 | 0.25 | 4.79 | 4.66 |
| ANZ | 22-Jul-26 | 4.00 | AA- | 4.72 | -0.02 | 0.23 | 4.80 | 4.65 |
| Qantas | 12-Oct-26 | 4.75 | BB+ | 5.46 | 0.02 | 0.23 | 5.49 | 5.35 |
| Australia Pacific Airports | 4-Nov-26 | 3.75 | BBB+ | 5.08 | 0.03 | 0.29 | 5.11 | 4.97 |
| Australia Post | 1-Dec-26 | 4.00 | A+ | 4.73 | 0.05 | 0.40 | 4.75 | 4.62 |
| WSO Finance | 31-Mar-27 | 4.50 | 5.12 | 0.05 | 0.36 | 5.14 | 5.00 | |
| Telstra | 19-Apr-27 | 4.00 | A | 4.84 | -0.05 | 0.27 | 4.96 | 4.77 |
| Asciano | 12-May-27 | 5.40 | BBB- | 6.24 | 0.10 | 0.34 | 6.25 | 6.12 |
| Lendlease | 27-Oct-27 | 3.40 | 6.19 | 0.06 | 6.19 | 6.21 | 6.07 | |
| Fonterra | 2-Nov-27 | 4.00 | A- | 5.02 | 0.05 | 0.33 | 5.04 | 4.91 |
| Macquarie Group | 15-Dec-27 | 4.15 | BBB+ | 5.74 | 0.08 | 0.26 | 5.78 | 5.65 |
| AusNet | 21-Aug-28 | 4.20 | A- | 5.49 | 0.05 | 0.12 | 5.52 | 5.39 |
| AusNet | 31-Jul-29 | 2.60 | A- | 5.81 | 0.09 | 5.81 | 5.68 |