Summary: Corporate bond spreads unchanged on average; swap spreads narrow; iTraxx up 5.00 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 -9bps to +2bps and the only notable exception came from Qantas’s October 2023s (spread: 192bps, +8bps).
One of the two other main measures of corporate risk, swap-to-bond spreads, narrowed along its curve. However, the other measure, credit default swap premiums, increased. The Australian credit default swap index, the iTraxx Australia Series 37, finished 5.00 points higher at 109.50 points.
Interested readers can find the week’s bond transactions in our tables via the link below.
| ISSUER | MATURITY | COUPON (%) | RATING | WEEK HIGH | WEEK LOW | CLOSING YIELD | Δ WEEK | Δ MONTH |
|---|---|---|---|---|---|---|---|---|
| Wells Fargo | 7-Sep-22 | 5.25 | A- | 2.64 | 2.42 | 2.62 | -0.08 | 0.22 |
| Melbourne Airport | 15-Sep-22 | 4.00 | BBB+ | 2.58 | 2.53 | 2.55 | -0.09 | 0.10 |
| Telstra | 16-Sep-22 | 4.00 | A | 2.48 | 2.44 | 2.47 | -0.02 | 0.04 |
| ANZ | 16-Aug-23 | 5.00 | AA- | 3.89 | 3.73 | 3.77 | -0.09 | 0.39 |
| Qantas | 10-Oct-23 | 4.40 | BB+ | 4.78 | 4.65 | 4.70 | 0.05 | 0.43 |
| Australia Post | 13-Nov-23 | 5.50 | A+ | 3.96 | 3.83 | 3.86 | -0.01 | 0.36 |
| Westpac | 21-Nov-23 | 4.40 | AA- | 4.07 | 3.93 | 3.96 | 0.03 | 0.47 |
| Fonterra | 26-Feb-24 | 5.50 | A- | 4.31 | 4.21 | 4.25 | -0.01 | 0.50 |
| NAB | 11-Mar-24 | 5.00 | AA- | 4.18 | 4.02 | 4.05 | -0.03 | 0.53 |
| Rabobank Nederland (Aust) | 11-Apr-24 | 5.50 | A+ | 4.30 | 4.17 | 4.22 | 0.03 | 0.58 |
| CBA | 27-May-24 | 4.75 | AA- | 4.27 | 4.12 | 4.17 | -0.02 | 0.53 |
| AusNet | 21-Jun-24 | 4.00 | BBB+ | 4.86 | 4.70 | 4.74 | -0.01 | 0.56 |
| Macquarie Bank | 7-Aug-24 | 1.75 | A+ | 4.52 | 4.40 | 4.44 | 0.01 | 0.55 |
| Wells Fargo | 27-Aug-24 | 4.75 | A+ | 4.87 | 4.67 | 4.71 | -0.05 | 0.59 |
| University of Sydney | 28-Aug-25 | 3.75 | Aa1 | 4.38 | 4.23 | 4.26 | -0.09 | 0.65 |
| Apple Inc | 10-Jun-26 | 3.60 | AA+ | 4.46 | 4.32 | 4.35 | -0.02 | 0.55 |
| CBA | 11-Jun-26 | 4.20 | AA- | 4.60 | 4.44 | 4.47 | 0.00 | 0.65 |
| ANZ | 22-Jul-26 | 4.00 | AA- | 4.61 | 4.45 | 4.48 | 0.00 | 0.63 |
| Qantas | 12-Oct-26 | 4.75 | BB+ | 5.71 | 5.55 | 5.59 | -0.02 | 0.57 |
| Australia Pacific Airports | 4-Nov-26 | 3.75 | BBB+ | 5.17 | 5.04 | 5.08 | -0.02 | 0.53 |
| Australia Post | 1-Dec-26 | 4.00 | A+ | 4.53 | 4.38 | 4.42 | -0.02 | 0.58 |
| Telstra | 19-Apr-27 | 4.00 | A | 4.82 | 4.68 | 4.72 | 0.00 | 0.55 |
| Asciano | 12-May-27 | 5.40 | BBB- | 6.07 | 5.95 | 5.99 | -0.05 | 0.47 |
| Fonterra | 2-Nov-27 | 4.00 | A- | 4.94 | 4.83 | 4.87 | -0.03 | 0.60 |
| Macquarie | 15-Dec-27 | 4.15 | BBB+ | 5.66 | 5.51 | 5.58 | 0.00 | 0.59 |
| AusNet | 21-Aug-28 | 4.20 | A- | 5.79 | 5.60 | 5.67 | -0.01 | 0.57 |