Summary: Corporate bond spreads unchanged on average; swap spreads mostly wider; iTraxx up 5 points.
Corporate spreads finished the week unchanged on average as corporate yields generally kept pace with the rises of their Commonwealth counterparts. The majority of spreads’ week-on-week changes at the individual level were within a range of -4bps to +4bps and the most notable exception came from Ausnet July 2029s (spread: 212bps, -11bps).
One of the two other main measures of corporate risk, swap-to-bond spreads mostly widened. However, another measure of corporate risk, credit default swap premiums, increased. The Australian credit default swap index, the iTraxx Australia Series 37, finished 5.00 points higher at 81.50 points.
| ISSUER | MATURITY | COUPON (%) | RATING | CLOSING YIELD | Δ WEEK | Δ MONTH | WEEK HIGH | WEEK LOW |
|---|---|---|---|---|---|---|---|---|
| ANZ | 16-Aug-23 | 5.00 | AA- | 4.15 | 0.29 | 0.08 | 4.15 | 3.92 |
| Qantas | 10-Oct-23 | 4.40 | BB+ | 4.75 | 0.26 | -0.16 | 4.75 | 4.52 |
| Australia Post | 13-Nov-23 | 5.50 | A+ | 4.30 | 0.38 | 0.03 | 4.30 | 4.00 |
| Westpac | 21-Nov-23 | 4.40 | AA- | 4.28 | 0.33 | -0.02 | 4.28 | 4.02 |
| Fonterra | 26-Feb-24 | 5.50 | A- | 4.56 | 0.43 | 0.02 | 4.56 | 4.22 |
| NAB | 11-Mar-24 | 5.00 | AA- | 4.39 | 0.38 | -0.06 | 4.39 | 4.10 |
| Rabobank Nederland (Aust) | 11-Apr-24 | 5.50 | A+ | 4.54 | 0.37 | -0.08 | 4.54 | 4.19 |
| CBA | 27-May-24 | 4.75 | AA- | 4.48 | 0.41 | -0.06 | 4.48 | 4.16 |
| AusNet | 21-Jun-24 | 4.00 | BBB+ | 4.90 | 0.45 | -0.09 | 4.90 | 4.55 |
| Macquarie Bank | 7-Aug-24 | 1.75 | A+ | 4.71 | 0.41 | -0.12 | 4.71 | 4.35 |
| Wells Fargo | 27-Aug-24 | 4.75 | A+ | 5.04 | 0.40 | -0.13 | 5.04 | 4.69 |
| Woolworths | 20-May-25 | 1.85 | BBB | 4.46 | 0.35 | -0.31 | 4.46 | 4.19 |
| University of Sydney | 28-Aug-25 | 3.75 | Aa1 | 4.40 | 0.44 | -0.19 | 4.40 | 4.07 |
| NBN Co | 3-Dec-25 | 1.00 | 4.58 | 0.40 | -0.35 | 4.58 | 4.29 | |
| Apple Inc | 10-Jun-26 | 3.60 | AA+ | 4.27 | 0.43 | -0.25 | 4.27 | 3.96 |
| CBA | 11-Jun-26 | 4.20 | AA- | 4.61 | 0.42 | -0.21 | 4.61 | 4.29 |
| ANZ | 22-Jul-26 | 4.00 | AA- | 4.62 | 0.42 | -0.22 | 4.62 | 4.30 |
| Qantas | 12-Oct-26 | 4.75 | BB+ | 5.27 | 0.33 | -0.49 | 5.27 | 5.04 |
| Australia Pacific Airports | 4-Nov-26 | 3.75 | BBB+ | 4.90 | 0.38 | -0.37 | 4.90 | 4.62 |
| Australia Post | 1-Dec-26 | 4.00 | A+ | 4.51 | 0.44 | -0.37 | 4.51 | 4.18 |
| WSO Finance | 31-Mar-27 | 4.50 | 4.91 | 0.42 | -0.31 | 4.91 | 4.60 | |
| Telstra | 19-Apr-27 | 4.00 | A | 4.71 | 0.40 | -0.31 | 4.71 | 4.42 |
| Asciano | 12-May-27 | 5.40 | BBB- | 6.03 | 0.40 | -0.40 | 6.03 | 5.75 |
| Fonterra | 2-Nov-27 | 4.00 | A- | 4.84 | 0.42 | -0.31 | 4.84 | 4.53 |
| Macquarie Group | 15-Dec-27 | 4.15 | BBB+ | 5.64 | 0.44 | -0.29 | 5.64 | 5.32 |
| AusNet | 21-Aug-28 | 4.20 | A- | 5.30 | 0.35 | -0.71 | 5.30 | 5.06 |
| AusNet | 31-Jul-29 | 2.60 | A- | 5.65 | 0.27 | 5.65 | 5.55 |