Summary: Corporate bond spreads about 5bps narrower on average; swap spreads wider; iTraxx down 1.80 points, issuance volumes jump.
Corporate spreads finished the week about 5bps narrower 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 -12bps to +2bps all the notable exceptions came from corporates with maturities in 2023 or earlier.
One of the two other main measures of corporate risk, swap-to-bond spreads, widened along its curve. The other measure, credit default swap premiums, decreased again. The Australian credit default swap index, the iTraxx Australia Series 37, finished 1.80 points lower at 109.00 points.
Volumes in the primary market for corporate bonds and notes jumped on the back of large transactions from a couple of major banks in addition to several deals from other banks. $8.3 billion worth of bonds or notes were priced by local entities or their subsidiaries, whereas in the previous week issuance amounted to $2.1 billion. There were no asset-backed transactions.
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 |
|---|---|---|---|---|---|---|---|---|
| Optus | 23-Aug-22 | 3.25 | A | 2.20 | 2.13 | 2.13 | -0.02 | 0.22 |
| Apple Inc | 28-Aug-22 | 3.70 | AA+ | 2.11 | 2.02 | 2.02 | -0.10 | 0.12 |
| Wells Fargo | 7-Sep-22 | 5.25 | A- | 2.40 | 2.37 | 2.37 | -0.03 | 0.08 |
| Melbourne Airport | 15-Sep-22 | 4.00 | BBB+ | 2.49 | 2.36 | 2.36 | -0.09 | 0.24 |
| Telstra | 16-Sep-22 | 4.00 | A | 2.47 | 2.41 | 2.42 | 0.00 | 0.04 |
| Stockland | 23-Nov-22 | 4.50 | A- | 2.19 | 2.03 | 2.19 | 0.13 | 0.04 |
| ANZ | 16-Aug-23 | 5.00 | AA- | 3.48 | 3.39 | 3.48 | 0.09 | -0.13 |
| Transpower NZ | 28-Aug-23 | 5.75 | AA- | 3.50 | 3.29 | 3.50 | 0.18 | 0.04 |
| Mirvac Finance | 18-Sep-23 | 3.50 | BBB+ | 3.75 | 3.62 | 3.75 | 0.16 | 0.00 |
| Qantas | 10-Oct-23 | 4.40 | BB+ | 4.34 | 4.25 | 4.34 | 0.07 | -0.01 |
| Australia Post | 13-Nov-23 | 5.50 | A+ | 3.64 | 3.52 | 3.64 | 0.15 | 0.10 |
| Westpac | 21-Nov-23 | 4.40 | AA- | 3.61 | 3.50 | 3.61 | 0.11 | -0.11 |
| Fonterra | 26-Feb-24 | 5.50 | A- | 3.88 | 3.76 | 3.88 | 0.13 | -0.11 |
| NAB | 11-Mar-24 | 5.00 | AA- | 3.66 | 3.53 | 3.66 | 0.13 | -0.12 |
| Rabobank Nederland (Aust) | 11-Apr-24 | 5.50 | A+ | 3.76 | 3.61 | 3.76 | 0.13 | -0.22 |
| CBA | 27-May-24 | 4.75 | AA- | 3.76 | 3.64 | 3.76 | 0.12 | -0.13 |
| AusNet | 21-Jun-24 | 4.00 | BBB+ | 4.30 | 4.16 | 4.30 | 0.12 | -0.18 |
| Macquarie Bank | 7-Aug-24 | 1.75 | A+ | 4.03 | 3.89 | 4.03 | 0.15 | -0.20 |
| Wells Fargo | 27-Aug-24 | 4.75 | A+ | 4.26 | 4.10 | 4.26 | 0.14 | -0.27 |
| University of Sydney | 28-Aug-25 | 3.75 | Aa1 | 3.78 | 3.61 | 3.78 | 0.17 | -0.26 |
| Apple Inc | 10-Jun-26 | 3.60 | AA+ | 3.89 | 3.77 | 3.89 | 0.09 | -0.41 |
| CBA | 11-Jun-26 | 4.20 | AA- | 3.94 | 3.81 | 3.94 | 0.12 | -0.39 |
| ANZ | 22-Jul-26 | 4.00 | AA- | 3.96 | 3.83 | 3.96 | 0.11 | -0.44 |
| Qantas | 12-Oct-26 | 4.75 | BB+ | 5.11 | 5.00 | 5.11 | 0.09 | -0.36 |
| Australia Pacific Airports | 4-Nov-26 | 3.75 | BBB+ | 4.66 | 4.53 | 4.66 | 0.11 | -0.28 |
| CBA | 17-Nov-26 | 3.25 | AA- | 3.95 | 3.79 | 3.95 | 0.13 | -0.40 |
| Australia Post | 1-Dec-26 | 4.00 | A+ | 3.96 | 3.82 | 3.96 | 0.12 | -0.36 |
| WSO Finance | 31-Mar-27 | 4.50 | A- | 4.48 | 4.38 | 4.48 | 0.06 | -0.37 |
| Telstra | 19-Apr-27 | 4.00 | A | 4.26 | 4.15 | 4.26 | 0.09 | -0.41 |
| Vicinity Centre | 26-Apr-27 | 4.00 | A | 4.75 | 4.57 | 4.75 | 0.15 | -0.31 |
| Dexus Finance | 11-May-27 | 4.25 | A3 | 4.49 | 4.33 | 4.49 | 0.15 | -0.35 |
| Asciano | 12-May-27 | 5.40 | BBB- | 5.61 | 5.50 | 5.61 | 0.09 | -0.36 |
| Fonterra | 2-Nov-27 | 4.00 | A- | 4.37 | 4.26 | 4.37 | 0.10 | -0.45 |
| Macquarie | 15-Dec-27 | 4.15 | BBB+ | 5.09 | 4.97 | 5.09 | 0.11 | -0.40 |
| AusNet | 21-Aug-28 | 4.20 | A- | 5.18 | 5.08 | 5.18 | 0.08 | -0.47 |