Summary: Corporate bond spreads steady; swap spreads tighten; iTraxx down.
Corporate spreads finished the week unchanged on average as corporate bond yields kept pace with the falls of their Commonwealth Government counterparts. The majority of spreads’ week-on-week changes at the individual level were within a range of -2bps to 5bps and the only material exception came from a short-dated line.
One of the two other main measures of corporate risk, swap-to-bond spreads, tightened a touch. The other main measure, credit default swap premiums, decreased on average. The Australian credit default swap index, the iTraxx Australia Series 39, finished 13.00 points lower at 85.00 points.
AUSTRALIAN CORPORATE BONDS
| ISSUER | MATURITY | COUPON (%) | RATING | CLOSING YIELD | Δ WEEK | Δ MONTH | WEEK HIGH | WEEK LOW |
|---|---|---|---|---|---|---|---|---|
| AUSTRALIA POST | 13-Nov-23 | 5.50 | A+ | 4.45 | 0.03 | 0.07 | 4.46 | 4.43 |
| WESTPAC | 21-Nov-23 | 5.25 | 4.40 | -0.01 | 0.03 | 4.43 | 4.40 | |
| FONTERRA | 26-Feb-24 | 5.50 | A- | 4.83 | 0.03 | 0.13 | 4.84 | 4.83 |
| NATIONAL AUST. BANK | 11-Mar-24 | 5.00 | 4.75 | 0.03 | 0.16 | 4.75 | 4.74 | |
| COMMONWEALTH BANK | 27-May-24 | 4.75 | 4.84 | 0.04 | 0.17 | 4.86 | 4.84 | |
| AURIZON NETWORK | 21-Jun-24 | 4.00 | BBB+ | 5.55 | 0.14 | 0.33 | 5.57 | 5.45 |
| WOOLWORTHS | 20-May-25 | 1.85 | BBB | 5.17 | 0.02 | 0.24 | 5.23 | 5.17 |
| UNIVERSITY OF SYDNEY | 28-Aug-25 | 3.75 | 5.06 | 0.00 | 0.28 | 5.14 | 5.06 | |
| NBN CO | 3-Dec-25 | 1.00 | 5.34 | -0.01 | 0.23 | 5.43 | 5.34 | |
| APPLE | 10-Jun-26 | 3.60 | AA+ | 4.98 | -0.06 | 0.21 | 5.10 | 4.98 |
| COMMONWEALTH BANK | 11-Jun-26 | 4.20 | AA- | 5.22 | -0.03 | 0.20 | 5.34 | 5.22 |
| ANZ BANK | 22-Jul-26 | 4.00 | AA- | 5.23 | -0.03 | 0.21 | 5.35 | 5.23 |
| NBN CO | 28-Sep-26 | 4.75 | 5.33 | -0.06 | 0.21 | 5.46 | 5.33 | |
| QANTAS | 12-Oct-26 | 4.75 | NR | 5.95 | -0.05 | 0.22 | 6.09 | 5.95 |
| AUST. PACIFIC AIRPORTS | 4-Nov-26 | 3.75 | BBB+ | 5.55 | -0.03 | 0.23 | 5.68 | 5.55 |
| WSO FINANCE | 1-Dec-26 | 4.00 | A+ | 5.25 | -0.05 | 0.24 | 5.38 | 5.25 |
| WSO FINANCE | 31-Mar-27 | 4.50 | 5.61 | -0.03 | 0.17 | 5.76 | 5.61 | |
| NBN CO | 14-Apr-27 | 4.20 | 5.36 | -0.07 | 0.20 | 5.51 | 5.36 | |
| PACIFIC NATIONAL FINANCE | 12-May-27 | 5.40 | BBB- | 7.27 | -0.06 | 0.17 | 7.42 | 7.27 |
| LONSDALE FINANCE | 15-Oct-27 | 2.10 | 5.94 | -0.06 | 0.22 | 6.11 | 5.94 | |
| LENDLEASE | 27-Oct-27 | 3.40 | 7.00 | -0.04 | 0.24 | 7.17 | 7.00 | |
| FONTERRA | 2-Nov-27 | 4.00 | A- | 5.45 | -0.06 | 0.16 | 5.61 | 5.45 |
| WOOLWORTHS | 15-Nov-27 | 1.85 | BBB | 5.29 | -0.05 | 0.30 | 5.45 | 5.29 |
| AUSTRALIA POST | 8-Dec-27 | 4.99 | 5.47 | -0.06 | 0.27 | 5.63 | 5.47 | |
| NBN CO | 2-Jun-28 | 2.15 | 5.62 | -0.09 | 0.22 | 5.80 | 5.62 | |
| WESFARMERS | 23-Jun-28 | 1.94 | A- | 5.53 | -0.07 | 0.23 | 5.71 | 5.53 |
| AUSNET | 21-Aug-28 | 4.20 | BBB+ | 6.02 | -0.07 | 0.27 | 6.20 | 6.02 |
| QANTAS | 27-Sep-28 | 3.15 | 6.30 | -0.08 | 0.26 | 6.49 | 6.30 | |
| AIRSERVICES AUST | 15-Nov-28 | 5.40 | 5.17 | -0.05 | 0.31 | 5.35 | 5.17 | |
| AUSNET | 31-Jul-29 | 2.60 | BBB+ | 6.41 | -0.09 | 0.24 | 6.62 | 6.41 |
| QANTAS | 27-Nov-29 | 2.95 | 6.73 | -0.09 | 0.31 | 6.94 | 6.73 | |
| WOOLWORTHS | 20-May-30 | 2.80 | BBB | 6.10 | -0.09 | 0.24 | 6.31 | 6.10 |
| QANTAS | 9-Sep-30 | 5.25 | 6.75 | -0.06 | 0.33 | 6.96 | 6.75 | |
| NBN CO | 16-Dec-30 | 2.20 | 6.17 | -0.14 | 0.27 | 6.40 | 6.17 | |
| BRISBANE AIRPORT | 30-Dec-30 | 4.50 | BBB | 6.42 | -0.05 | 0.37 | 6.64 | 6.42 |
| LENDLEASE | 31-Mar-31 | 3.70 | 8.20 | -0.07 | 0.46 | 8.44 | 8.20 | |
| WESFARMERS | 23-Jun-31 | 2.55 | A- | 6.26 | -0.10 | 0.33 | 6.50 | 6.26 |
| WOOLWORTHS | 15-Nov-31 | 2.75 | BBB | 6.40 | -0.11 | 0.27 | 6.63 | 6.40 |
| AUST. PACIFIC AIRPORTS (BRISBANE) | 25-Nov-31 | 3.76 | 6.56 | -0.07 | 0.33 | 6.80 | 6.56 |