Summary: Corporate bond spreads 3bps tighter on average; swap spreads modestly wider; iTraxx up 2.5 points.
Corporate spreads finished the week about 3bps tighter on average as corporate yields generally lagged the rises of their Commonwealth counterparts. The majority of spreads’ week-on-week changes at the individual level were within a range of -7bps to +2bps and only Macquarie Group November 2027s (spread: 204bps, -11bps) was the only notable exception.
One of the two other main measures of corporate risk, swap-to-bond spreads widened modestly. Another measure of corporate risk, credit default swap premiums, also increased. The Australian credit default swap index, the iTraxx Australia Series 37, finished 2.50 points higher at 84.00 points.
| ISSUER | MATURITY | COUPON (%) | RATING | CLOSING YIELD | Δ WEEK | Δ MONTH | WEEK HIGH | WEEK LOW |
|---|---|---|---|---|---|---|---|---|
| ANZ | 16-Aug-23 | 5.00 | AA- | 4.11 | -0.04 | 0.14 | 4.16 | 4.10 |
| Qantas | 10-Oct-23 | 4.40 | BB+ | 4.72 | -0.03 | 0.03 | 4.75 | 4.70 |
| Australia Post | 13-Nov-23 | 5.50 | A+ | 4.30 | 0.00 | 0.22 | 4.31 | 4.27 |
| Westpac | 21-Nov-23 | 4.40 | AA- | 4.26 | -0.03 | 0.13 | 4.30 | 4.23 |
| Fonterra | 26-Feb-24 | 5.50 | A- | 4.51 | -0.05 | 0.22 | 4.56 | 4.48 |
| NAB | 11-Mar-24 | 5.00 | AA- | 4.42 | 0.03 | 0.19 | 4.42 | 4.38 |
| Rabobank Nederland (Aust) | 11-Apr-24 | 5.50 | A+ | 4.57 | 0.03 | 0.20 | 4.58 | 4.54 |
| CBA | 27-May-24 | 4.75 | AA- | 4.53 | 0.05 | 0.24 | 4.54 | 4.50 |
| AusNet | 21-Jun-24 | 4.00 | BBB+ | 4.91 | 0.01 | 0.20 | 4.92 | 4.87 |
| Macquarie Bank | 7-Aug-24 | 1.75 | A+ | 4.70 | -0.01 | 0.15 | 4.72 | 4.66 |
| Wells Fargo | 27-Aug-24 | 4.75 | A+ | 5.02 | -0.02 | 0.12 | 5.09 | 4.99 |
| Woolworths | 20-May-25 | 1.85 | BBB | 4.55 | 0.09 | 0.13 | 4.55 | 4.51 |
| University of Sydney | 28-Aug-25 | 3.75 | Aa1 | 4.48 | 0.08 | 0.21 | 4.48 | 4.45 |
| NBN Co | 3-Dec-25 | 1.00 | 4.64 | 0.06 | 0.07 | 4.64 | 4.60 | |
| Apple Inc | 10-Jun-26 | 3.60 | AA+ | 4.36 | 0.08 | 0.15 | 4.36 | 4.31 |
| CBA | 11-Jun-26 | 4.20 | AA- | 4.71 | 0.10 | 0.16 | 4.71 | 4.66 |
| ANZ | 22-Jul-26 | 4.00 | AA- | 4.71 | 0.09 | 0.14 | 4.71 | 4.65 |
| Qantas | 12-Oct-26 | 4.75 | BB+ | 5.36 | 0.08 | -0.06 | 5.36 | 5.30 |
| Australia Pacific Airports | 4-Nov-26 | 3.75 | BBB+ | 4.97 | 0.07 | 0.04 | 4.97 | 4.92 |
| Australia Post | 1-Dec-26 | 4.00 | A+ | 4.60 | 0.09 | 0.08 | 4.60 | 4.55 |
| WSO Finance | 31-Mar-27 | 4.50 | 5.02 | 0.10 | 0.09 | 5.02 | 4.96 | |
| Telstra | 19-Apr-27 | 4.00 | A | 4.81 | 0.10 | 0.12 | 4.81 | 4.75 |
| Asciano | 12-May-27 | 5.40 | BBB- | 6.08 | 0.05 | 0.02 | 6.08 | 6.02 |
| Lendlease | 27-Oct-27 | 3.40 | 6.06 | 0.11 | 6.06 | 6.06 | 5.99 | |
| Fonterra | 2-Nov-27 | 4.00 | A- | 4.94 | 0.10 | 0.13 | 4.94 | 4.88 |
| Macquarie Group | 15-Dec-27 | 4.15 | BBB+ | 5.61 | -0.02 | -0.05 | 5.62 | 5.55 |
| AusNet | 21-Aug-28 | 4.20 | A- | 5.41 | 0.11 | -0.15 | 5.41 | 5.35 |
| AusNet | 31-Jul-29 | 2.60 | A- | 5.71 | 0.06 | 5.71 | 5.65 |