Summary: Corporate bond spreads 6bps wider; swap spreads widen; iTraxx down.
Corporate spreads finished the week about 6bps wider as corporate bond yields outpaced the rises of their Commonwealth Government counterparts. The majority of spreads’ week-on-week changes at the individual level were within a range of -1bp to 6bps and the only material exceptions came from a couple of short-dated lines.
One of the two other main measures of corporate risk, swap-to-bond spreads, widened. The other main measure, credit default swap premiums, decreased on average. The Australian credit default swap index, the iTraxx Australia Series 39, finished 2.00 points lower at 98.00 points.
AUSTRALIAN CORPORATE BONDS
| ISSUER | MATURITY | COUPON (%) | RATING | CLOSING YIELD | Δ WEEK | Δ MONTH | WEEK HIGH | WEEK LOW |
|---|---|---|---|---|---|---|---|---|
| AUSTRALIA POST | 13-Nov-23 | 5.5 | A+ | 4.42 | 0.03 | 0.02 | 4.43 | 4.40 |
| WESTPAC | 21-Nov-23 | 5.25 | 4.41 | 0.05 | 0.03 | 4.42 | 4.36 | |
| FONTERRA | 26-Feb-24 | 5.5 | A- | 4.81 | 0.09 | 0.10 | 4.81 | 4.70 |
| NATIONAL AUST. BANK | 11-Mar-24 | 5 | 4.71 | 0.10 | 0.12 | 4.72 | 4.61 | |
| COMMONWEALTH BANK | 27-May-24 | 4.75 | 4.80 | 0.11 | 0.13 | 4.80 | 4.68 | |
| AURIZON NETWORK | 21-Jun-24 | 4 | BBB+ | 5.41 | 0.17 | 0.19 | 5.41 | 5.25 |
| WOOLWORTHS | 20-May-25 | 1.85 | BBB | 5.15 | 0.14 | 0.23 | 5.15 | 4.98 |
| UNIVERSITY OF SYDNEY | 28-Aug-25 | 3.75 | 5.06 | 0.21 | 0.30 | 5.06 | 4.88 | |
| NBN CO | 3-Dec-25 | 1 | 5.35 | 0.15 | 0.29 | 5.36 | 5.18 | |
| APPLE | 10-Jun-26 | 3.6 | AA+ | 5.03 | 0.13 | 0.30 | 5.04 | 4.85 |
| COMMONWEALTH BANK | 11-Jun-26 | 4.2 | AA- | 5.25 | 0.13 | 0.28 | 5.25 | 5.07 |
| ANZ BANK | 22-Jul-26 | 4 | AA- | 5.26 | 0.13 | 0.29 | 5.26 | 5.08 |
| NBN CO | 28-Sep-26 | 4.75 | 5.38 | 0.18 | 0.33 | 5.40 | 5.19 | |
| QANTAS | 12-Oct-26 | 4.75 | NR | 6.00 | 0.11 | 0.31 | 6.00 | 5.83 |
| AUST. PACIFIC AIRPORTS | 4-Nov-26 | 3.75 | BBB+ | 5.57 | 0.15 | 0.31 | 5.58 | 5.37 |
| WSO FINANCE | 1-Dec-26 | 4 | A+ | 5.29 | 0.13 | 0.34 | 5.30 | 5.10 |
| WSO FINANCE | 31-Mar-27 | 4.5 | 5.65 | 0.03 | 0.26 | 5.65 | 5.47 | |
| NBN CO | 14-Apr-27 | 4.2 | 5.43 | 0.13 | 0.35 | 5.45 | 5.27 | |
| PACIFIC NATIONAL FINANCE | 12-May-27 | 5.4 | BBB- | 7.33 | 0.08 | 0.29 | 7.34 | 7.15 |
| LONSDALE FINANCE | 15-Oct-27 | 2.1 | 6.01 | 0.19 | 0.34 | 6.02 | 5.79 | |
| LENDLEASE | 27-Oct-27 | 3.4 | 7.04 | 0.11 | 0.34 | 7.06 | 6.87 | |
| FONTERRA | 2-Nov-27 | 4 | A- | 5.51 | 0.10 | 0.28 | 5.52 | 5.33 |
| WOOLWORTHS | 15-Nov-27 | 1.85 | BBB | 5.34 | 0.13 | 0.41 | 5.34 | 5.15 |
| AUSTRALIA POST | 8-Dec-27 | 4.99 | 5.53 | 0.13 | 0.40 | 5.55 | 5.35 | |
| NBN CO | 2-Jun-28 | 2.15 | 5.71 | 0.14 | 0.40 | 5.75 | 5.55 | |
| WESFARMERS | 23-Jun-28 | 1.94 | A- | 5.60 | 0.13 | 0.38 | 5.62 | 5.42 |
| AUSNET | 21-Aug-28 | 4.2 | BBB+ | 6.09 | 0.11 | 0.42 | 6.11 | 5.87 |
| QANTAS | 27-Sep-28 | 3.15 | 6.38 | 0.10 | 0.42 | 6.40 | 6.22 | |
| AIRSERVICES AUST | 15-Nov-28 | 5.4 | 5.22 | 0.14 | 0.42 | 5.24 | 5.04 | |
| AUSNET | 31-Jul-29 | 2.6 | BBB+ | 6.50 | 0.13 | 0.43 | 6.53 | 6.28 |
| QANTAS | 27-Nov-29 | 2.95 | 6.82 | 0.10 | 0.51 | 6.86 | 6.66 | |
| WOOLWORTHS | 20-May-30 | 2.8 | BBB | 6.19 | 0.12 | 0.45 | 6.20 | 6.02 |
| QANTAS | 9-Sep-30 | 5.25 | 6.81 | 0.09 | 0.51 | 6.84 | 6.65 | |
| NBN CO | 16-Dec-30 | 2.2 | 6.31 | 0.14 | 0.52 | 6.39 | 6.16 | |
| BRISBANE AIRPORT | 30-Dec-30 | 4.5 | BBB | 6.47 | 0.09 | 0.54 | 6.51 | 6.32 |
| LENDLEASE | 31-Mar-31 | 3.7 | 8.27 | 0.14 | 0.66 | 8.31 | 8.06 | |
| WESFARMERS | 23-Jun-31 | 2.55 | A- | 6.37 | 0.12 | 0.56 | 6.41 | 6.19 |
| WOOLWORTHS | 15-Nov-31 | 2.75 | BBB | 6.51 | 0.09 | 0.51 | 6.55 | 6.35 |
| AUST. PACIFIC AIRPORTS (BRISBANE) | 25-Nov-31 | 3.76 | 6.63 | 0.11 | 0.59 | 6.68 | 6.46 |