Summary: Corporate bond spreads tighter on average; swap spreads narrow; iTraxx down 1.5 points.
Corporate spreads finished the week about 9bps tighter on average as corporate yields generally lagged the falls of their Commonwealth counterparts. The majority of spreads’ week-on-week changes at the individual level were within a range of -6bps to -15bps and the most notable exception came from Ausnet August 2028s (spread: 180bps, -24bps).
One of the two other main measures of corporate risk, swap-to-bond spreads narrowed modestly. Another measure of corporate risk, credit default swap premiums, also declined. The Australian credit default swap index, the iTraxx Australia Series 37, finished 1.50 points lower at 76.50 points.
| ISSUER | MATURITY | COUPON (%) | RATING | WEEK HIGH | WEEK LOW | CLOSING YIELD | Δ WEEK | Δ MONTH |
|---|---|---|---|---|---|---|---|---|
| ANZ | 16-Aug-23 | 5.00 | AA- | 3.97 | 3.86 | 3.86 | -0.15 | -0.11 |
| Qantas | 10-Oct-23 | 4.40 | BB+ | 4.62 | 4.48 | 4.48 | -0.16 | -0.28 |
| Australia Post | 13-Nov-23 | 5.50 | A+ | 4.05 | 3.93 | 3.93 | -0.15 | -0.20 |
| Westpac | 21-Nov-23 | 4.40 | AA- | 4.11 | 3.96 | 3.96 | -0.19 | -0.19 |
| Fonterra | 26-Feb-24 | 5.50 | A- | 4.28 | 4.13 | 4.13 | -0.17 | -0.24 |
| NAB | 11-Mar-24 | 5.00 | AA- | 4.19 | 4.01 | 4.01 | -0.22 | -0.26 |
| Rabobank Nederland (Aust) | 11-Apr-24 | 5.50 | A+ | 4.33 | 4.17 | 4.17 | -0.19 | -0.26 |
| CBA | 27-May-24 | 4.75 | AA- | 4.25 | 4.07 | 4.07 | -0.23 | -0.31 |
| AusNet | 21-Jun-24 | 4.00 | BBB+ | 4.62 | 4.45 | 4.45 | -0.20 | -0.36 |
| Macquarie Bank | 7-Aug-24 | 1.75 | A+ | 4.48 | 4.30 | 4.30 | -0.22 | -0.37 |
| Wells Fargo | 27-Aug-24 | 4.75 | A+ | 4.82 | 4.64 | 4.64 | -0.20 | -0.36 |
| University of Sydney | 28-Aug-25 | 3.75 | Aa1 | 4.23 | 3.96 | 3.96 | -0.29 | -0.46 |
| Apple Inc | 10-Jun-26 | 3.60 | AA+ | 4.09 | 3.85 | 3.85 | -0.25 | -0.54 |
| CBA | 11-Jun-26 | 4.20 | AA- | 4.44 | 4.19 | 4.19 | -0.29 | -0.48 |
| ANZ | 22-Jul-26 | 4.00 | AA- | 4.46 | 4.20 | 4.20 | -0.29 | -0.49 |
| Qantas | 12-Oct-26 | 4.75 | BB+ | 5.21 | 4.94 | 4.94 | -0.29 | -0.74 |
| Australia Pacific Airports | 4-Nov-26 | 3.75 | BBB+ | 4.77 | 4.53 | 4.53 | -0.26 | -0.63 |
| Australia Post | 1-Dec-26 | 4.00 | A+ | 4.31 | 4.07 | 4.07 | -0.26 | -0.68 |
| WSO Finance | 31-Mar-27 | 4.50 | 4.74 | 4.49 | 4.49 | -0.27 | -0.62 | |
| Telstra | 19-Apr-27 | 4.00 | A | 4.55 | 4.31 | 4.31 | -0.27 | -0.60 |
| Asciano | 12-May-27 | 5.40 | BBB- | 5.88 | 5.63 | 5.63 | -0.27 | -0.69 |
| Fonterra | 2-Nov-27 | 4.00 | A- | 4.66 | 4.42 | 4.42 | -0.27 | -0.64 |
| Macquarie Group | 15-Dec-27 | 4.15 | BBB+ | 5.46 | 5.20 | 5.20 | -0.28 | -0.64 |
| AusNet | 21-Aug-28 | 4.20 | A- | 5.35 | 4.94 | 4.94 | -0.43 | -1.05 |