Summary: Corporate bond spreads about 4bps wider on average; swap spreads narrower; iTraxx up 6 points.
Corporate spreads finished the week about 4bps wider on average as corporate yields lagged the falls of their Commonwealth counterparts. The majority of spreads’ week-on-week changes at the individual level were within a range of -12bps to +5bps; the exceptions were typically from bonds with maturities in 2022.
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 6.00 points higher at 141.00 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 |
|---|---|---|---|---|---|---|---|---|
| GE Capital | 8-Aug-22 | 5.50 | BBB+ | 2.15 | 2.07 | 2.15 | 0.08 | 0.37 |
| Optus | 23-Aug-22 | 3.25 | A | 2.20 | 2.02 | 2.18 | 0.15 | 0.34 |
| Apple Inc | 28-Aug-22 | 3.70 | AA+ | 2.04 | 1.92 | 2.02 | 0.10 | 0.29 |
| Wells Fargo | 7-Sep-22 | 5.25 | A- | 2.43 | 2.38 | 2.41 | 0.06 | 0.29 |
| Melbourne Airport | 15-Sep-22 | 4.00 | BBB+ | 2.84 | 2.54 | 2.54 | 0.21 | 0.77 |
| Telstra | 16-Sep-22 | 4.00 | A | 2.57 | 2.46 | 2.56 | 0.06 | 0.48 |
| Stockland | 23-Nov-22 | 4.50 | A- | 2.41 | 2.21 | 2.31 | -0.09 | 0.05 |
| ANZ | 16-Aug-23 | 5.00 | AA- | 3.81 | 3.64 | 3.78 | 0.08 | 0.31 |
| Transpower NZ | 28-Aug-23 | 5.75 | AA- | 3.72 | 3.52 | 3.71 | 0.10 | 0.31 |
| Mirvac Finance | 18-Sep-23 | 3.50 | BBB+ | 3.97 | 3.84 | 3.96 | 0.06 | 0.26 |
| Qantas | 10-Oct-23 | 4.40 | BB+ | 4.61 | 4.44 | 4.54 | 0.04 | 0.11 |
| Australia Post | 13-Nov-23 | 5.50 | A+ | 3.73 | 3.61 | 3.71 | 0.04 | 0.14 |
| Westpac | 21-Nov-23 | 4.40 | AA- | 3.86 | 3.71 | 3.83 | 0.05 | 0.17 |
| Fonterra | 26-Feb-24 | 5.50 | A- | 4.15 | 4.04 | 4.12 | 0.01 | 0.13 |
| NAB | 11-Mar-24 | 5.00 | AA- | 3.89 | 3.76 | 3.86 | 0.04 | 0.02 |
| Rabobank Nederland (Aust) | 11-Apr-24 | 5.50 | A+ | 4.06 | 3.95 | 4.03 | 0.00 | -0.01 |
| CBA | 27-May-24 | 4.75 | AA- | 4.00 | 3.93 | 3.96 | -0.04 | 0.03 |
| AusNet | 21-Jun-24 | 4.00 | BBB+ | 4.64 | 4.53 | 4.62 | 0.05 | 0.11 |
| Macquarie Bank | 7-Aug-24 | 1.75 | A+ | 4.31 | 4.20 | 4.28 | 0.01 | -0.01 |
| Wells Fargo | 27-Aug-24 | 4.75 | A+ | 4.56 | 4.47 | 4.53 | -0.02 | 0.04 |
| University of Sydney | 28-Aug-25 | 3.75 | Aa1 | 4.07 | 3.99 | 4.04 | -0.03 | -0.09 |
| Apple Inc | 10-Jun-26 | 3.60 | AA+ | 4.30 | 4.18 | 4.22 | -0.04 | -0.08 |
| CBA | 11-Jun-26 | 4.20 | AA- | 4.37 | 4.24 | 4.28 | -0.03 | -0.06 |
| ANZ | 22-Jul-26 | 4.00 | AA- | 4.42 | 4.29 | 4.32 | -0.07 | -0.06 |
| Qantas | 12-Oct-26 | 4.75 | BB+ | 5.55 | 5.41 | 5.43 | -0.05 | -0.10 |
| Australia Pacific Airports | 4-Nov-26 | 3.75 | BBB+ | 5.03 | 4.95 | 5.03 | 0.04 | 0.04 |
| CBA | 17-Nov-26 | 3.25 | AA- | 4.26 | 4.21 | 4.25 | -0.07 | -0.08 |
| Australia Post | 1-Dec-26 | 4.00 | A+ | 4.30 | 4.24 | 4.27 | -0.03 | -0.11 |
| WSO Finance | 31-Mar-27 | 4.50 | A- | 4.91 | 4.82 | 4.87 | -0.01 | 0.00 |
| Telstra | 19-Apr-27 | 4.00 | A | 4.70 | 4.63 | 4.64 | -0.07 | -0.04 |
| Vicinity Centre | 26-Apr-27 | 4.00 | A | 5.05 | 5.01 | 5.04 | -0.06 | -0.04 |
| Dexus Finance | 11-May-27 | 4.25 | A3 | 4.86 | 4.80 | 4.85 | -0.03 | 0.01 |
| Asciano | 12-May-27 | 5.40 | BBB- | 6.01 | 5.95 | 6.01 | 0.00 | 0.02 |
| Fonterra | 2-Nov-27 | 4.00 | A- | 4.83 | 4.73 | 4.73 | -0.09 | -0.12 |
| Macquarie | 15-Dec-27 | 4.15 | BBB+ | 5.51 | 5.41 | 5.41 | -0.09 | -0.08 |
| AusNet | 21-Aug-28 | 4.20 | A- | 5.66 | 5.58 | 5.58 | -0.06 | 0.07 |