Summary: Corporate bond spreads about 11bps tighter on average; swap spreads narrower; iTraxx down 16 points.
Corporate spreads finished the week about 11bps 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 -14bps to -5bps, with the spread of Qantas’ October 2023s (spread: 210bps, +1bp) the most notable exception.
One of the two other main measures of corporate risk, swap-to-bond spreads, narrowed along its curve. The other measure, credit default swap premiums, decreased. The Australian credit default swap index, the iTraxx Australia Series 37, finished 16.00 points lower at 125.00 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 | 2.15 | 2.15 | 0.00 | 0.34 |
| Optus | 23-Aug-22 | 3.25 | A | 2.28 | 2.14 | 2.14 | -0.04 | 0.11 |
| Apple Inc | 28-Aug-22 | 3.70 | AA+ | 2.07 | 2.02 | 2.04 | 0.03 | 0.19 |
| Wells Fargo | 7-Sep-22 | 5.25 | A- | 2.43 | 2.41 | 2.41 | 0.01 | 0.08 |
| Melbourne Airport | 15-Sep-22 | 4.00 | BBB+ | 2.61 | 2.53 | 2.53 | -0.01 | 0.20 |
| Telstra | 16-Sep-22 | 4.00 | A | 2.65 | 2.58 | 2.58 | 0.02 | 0.08 |
| Stockland | 23-Nov-22 | 4.50 | A- | 2.46 | 2.25 | 2.25 | -0.06 | -0.17 |
| ANZ | 16-Aug-23 | 5.00 | AA- | 3.93 | 3.77 | 3.83 | 0.05 | -0.31 |
| Transpower NZ | 28-Aug-23 | 5.75 | AA- | 3.91 | 3.78 | 3.80 | 0.09 | -0.22 |
| Mirvac Finance | 18-Sep-23 | 3.50 | BBB+ | 4.16 | 4.03 | 4.07 | 0.11 | -0.27 |
| Qantas | 10-Oct-23 | 4.40 | BB+ | 4.81 | 4.64 | 4.71 | 0.17 | -0.32 |
| Australia Post | 13-Nov-23 | 5.50 | A+ | 3.94 | 3.76 | 3.85 | 0.14 | -0.36 |
| Westpac | 21-Nov-23 | 4.40 | AA- | 4.04 | 3.87 | 3.93 | 0.10 | -0.40 |
| Fonterra | 26-Feb-24 | 5.50 | A- | 4.32 | 4.16 | 4.22 | 0.09 | -0.43 |
| NAB | 11-Mar-24 | 5.00 | AA- | 4.08 | 3.91 | 3.99 | 0.13 | -0.48 |
| Rabobank Nederland (Aust) | 11-Apr-24 | 5.50 | A+ | 4.24 | 4.06 | 4.13 | 0.10 | -0.56 |
| CBA | 27-May-24 | 4.75 | AA- | 4.17 | 3.96 | 4.06 | 0.10 | -0.50 |
| AusNet | 21-Jun-24 | 4.00 | BBB+ | 4.79 | 4.66 | 4.68 | 0.05 | -0.42 |
| Macquarie Bank | 7-Aug-24 | 1.75 | A+ | 4.49 | 4.28 | 4.38 | 0.10 | -0.57 |
| Wells Fargo | 27-Aug-24 | 4.75 | A+ | 4.75 | 4.56 | 4.63 | 0.10 | -0.53 |
| University of Sydney | 28-Aug-25 | 3.75 | Aa1 | 4.24 | 4.04 | 4.11 | 0.07 | -0.61 |
| Apple Inc | 10-Jun-26 | 3.60 | AA+ | 4.42 | 4.26 | 4.30 | 0.08 | -0.63 |
| CBA | 11-Jun-26 | 4.20 | AA- | 4.46 | 4.31 | 4.33 | 0.05 | -0.62 |
| ANZ | 22-Jul-26 | 4.00 | AA- | 4.50 | 4.34 | 4.37 | 0.05 | -0.64 |
| Qantas | 12-Oct-26 | 4.75 | BB+ | 5.65 | 5.47 | 5.53 | 0.10 | -0.64 |
| Australia Pacific Airports | 4-Nov-26 | 3.75 | BBB+ | 5.21 | 5.06 | 5.08 | 0.05 | -0.53 |
| CBA | 17-Nov-26 | 3.25 | AA- | 4.44 | 4.31 | 4.33 | 0.08 | -0.63 |
| Australia Post | 1-Dec-26 | 4.00 | A+ | 4.46 | 4.30 | 4.33 | 0.07 | -0.65 |
| WSO Finance | 31-Mar-27 | 4.50 | A- | 5.06 | 4.90 | 4.93 | 0.06 | -0.57 |
| Telstra | 19-Apr-27 | 4.00 | A | 4.81 | 4.68 | 4.68 | 0.04 | -0.63 |
| Vicinity Centre | 26-Apr-27 | 4.00 | A | 5.24 | 5.11 | 5.12 | 0.08 | -0.60 |
| Dexus Finance | 11-May-27 | 4.25 | A3 | 5.03 | 4.92 | 4.92 | 0.07 | -0.57 |
| Asciano | 12-May-27 | 5.40 | BBB- | 6.19 | 6.04 | 6.06 | 0.06 | -0.52 |
| Fonterra | 2-Nov-27 | 4.00 | A- | 4.92 | 4.77 | 4.77 | 0.04 | -0.70 |
| Macquarie | 15-Dec-27 | 4.15 | BBB+ | 5.60 | 5.44 | 5.47 | 0.06 | -0.65 |
| AusNet | 21-Aug-28 | 4.20 | A- | 5.79 | 5.61 | 5.64 | 0.05 | -0.52 |