Summary: Corporate bond spreads unchanged on average; swap spreads tighter; iTraxx up 12 points.
Corporate spreads finished the week unchanged on average as corporate yields kept pace with falls of their Commonwealth counterparts. The majority of spreads’ week-on-week changes at the individual level were within a range of -13bps to +12bps; Commonwealth Bank’s November 2026s (spread: 101bps, +20bps) was an obvious exception apart from a few short-dated lines.
One of the two other main measures of corporate risk, swap-to-bond spreads, tightened all along the curve. However, the other measure, credit default swap premiums, increased noticeably. The Australian credit default swap index, the iTraxx Australia Series 37, finished 12.00 points higher at 132.00 points.
In ratings news, S&P downgraded Suncorp-Metway Ltd from AA- to A+ and revised its outlook to “negative” in response to the announcement by Suncorp Group it is undertaking a strategic review of its banking operations.
Interested readers can find more details as well as other 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+ | 2.06 | 2.01 | 2.06 | n/a | 0.36 |
| Optus | 23-Aug-22 | 3.25 | A | 2.02 | 1.91 | 1.91 | -0.08 | 0.37 |
| Apple Inc | 28-Aug-22 | 3.70 | AA+ | 1.90 | 1.85 | 1.90 | 0.04 | 0.41 |
| Wells Fargo | 7-Sep-22 | 5.25 | A- | 2.33 | 2.30 | 2.30 | 0.05 | 0.42 |
| Melbourne Airport | 15-Sep-22 | 4.00 | BBB+ | 2.16 | 2.07 | 2.12 | -0.47 | 0.58 |
| Telstra | 16-Sep-22 | 4.00 | A | 2.48 | 2.38 | 2.38 | -0.03 | 0.63 |
| Stockland | 23-Nov-22 | 4.50 | A- | 2.27 | 2.14 | 2.15 | n/a | 0.29 |
| ANZ | 16-Aug-23 | 5.00 | AA- | 3.93 | 3.61 | 3.61 | -0.07 | 0.61 |
| Transpower NZ | 28-Aug-23 | 5.75 | AA- | 3.68 | 3.45 | 3.45 | n/a | 0.53 |
| Mirvac Finance | 18-Sep-23 | 3.50 | BBB+ | 4.06 | 3.75 | 3.75 | n/a | 0.59 |
| Qantas | 10-Oct-23 | 4.40 | BB+ | 4.80 | 4.35 | 4.35 | -0.32 | 0.35 |
| Australia Post | 13-Nov-23 | 5.50 | A+ | 3.98 | 3.54 | 3.54 | -0.20 | 0.49 |
| Westpac | 21-Nov-23 | 4.40 | AA- | 4.06 | 3.72 | 3.72 | -0.11 | 0.52 |
| Fonterra | 26-Feb-24 | 5.50 | A- | 4.40 | 4.00 | 4.00 | -0.19 | 0.53 |
| NAB | 11-Mar-24 | 5.00 | AA- | 4.22 | 3.78 | 3.78 | -0.16 | 0.40 |
| Rabobank Nederland (Aust) | 11-Apr-24 | 5.50 | A+ | 4.43 | 3.99 | 3.99 | -0.18 | 0.50 |
| CBA | 27-May-24 | 4.75 | AA- | 4.51 | 3.89 | 3.89 | -0.19 | 0.40 |
| AusNet | 21-Jun-24 | 4.00 | BBB+ | 4.90 | 4.48 | 4.48 | -0.26 | 0.40 |
| Macquarie Bank | 7-Aug-24 | 1.75 | A+ | 4.89 | 4.23 | 4.23 | -0.21 | 0.39 |
| Wells Fargo | 27-Aug-24 | 4.75 | A+ | 4.95 | 4.53 | 4.53 | -0.14 | 0.56 |
| University of Sydney | 28-Aug-25 | 3.75 | Aa1 | 4.65 | 4.04 | 4.04 | -0.20 | 0.39 |
| Apple Inc | 10-Jun-26 | 3.60 | AA+ | 4.71 | 4.30 | 4.30 | -0.22 | 0.47 |
| CBA | 11-Jun-26 | 4.20 | AA- | 4.78 | 4.33 | 4.33 | -0.26 | 0.32 |
| ANZ | 22-Jul-26 | 4.00 | AA- | 4.82 | 4.40 | 4.40 | -0.23 | 0.36 |
| Qantas | 12-Oct-26 | 4.75 | BB+ | 5.93 | 5.46 | 5.46 | -0.27 | 0.31 |
| Australia Pacific Airports | 4-Nov-26 | 3.75 | BBB+ | 5.40 | 4.94 | 4.94 | -0.23 | 0.38 |
| CBA | 17-Nov-26 | 3.25 | AA- | 4.58 | 4.34 | 4.34 | n/a | 0.37 |
| Australia Post | 1-Dec-26 | 4.00 | A+ | 4.76 | 4.32 | 4.32 | -0.20 | 0.41 |
| WSO Finance | 31-Mar-27 | 4.50 | A- | 5.28 | 4.85 | 4.85 | -0.24 | 0.45 |
| Telstra | 19-Apr-27 | 4.00 | A | 5.07 | 4.67 | 4.67 | -0.17 | 0.43 |
| Vicinity Centre | 26-Apr-27 | 4.00 | A | 5.34 | 5.05 | 5.05 | n/a | 0.45 |
| Dexus Finance | 11-May-27 | 4.25 | A3 | 5.13 | 4.83 | 4.83 | n/a | 0.48 |
| Asciano | 12-May-27 | 5.40 | BBB- | 6.36 | 5.96 | 5.96 | -0.19 | 0.37 |
| Fonterra | 2-Nov-27 | 4.00 | A- | 5.23 | 4.83 | 4.83 | -0.19 | 0.47 |
| Macquarie | 15-Dec-27 | 4.15 | BBB+ | 5.92 | 5.50 | 5.50 | -0.18 | 0.67 |
| AusNet | 21-Aug-28 | 4.20 | A- | 5.96 | 5.65 | 5.65 | -0.09 | 0.67 |