Summary: Corporate bond spreads 3bps narrower; swap spreads narrower; iTraxx down.
Corporate spreads finished the week 3bps narrower as corporate bond yields outpaced the falls of their Commonwealth Government counterparts. The majority of spreads’ week-on-week changes at the individual level were within a range of -6bps to zero and the only notable exception came from AusNet July 2029s (spread: 188bps, -11bps).
One of the two other main measures of corporate risk, swap-to-bond spreads, narrowed. 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 94.00 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+ | 4.38 | 0.00 | 0.01 | 4.38 | 4.37 |
| WESTPAC | 21-Nov-23 | 5.25 | 4.34 | -0.02 | -0.04 | 4.36 | 4.34 | |
| FONTERRA | 26-Feb-24 | 5.50 | A- | 4.66 | 0.01 | 0.05 | 4.66 | 4.64 |
| NATIONAL AUST. BANK | 11-Mar-24 | 5.00 | 4.55 | 0.01 | -0.03 | 4.55 | 4.53 | |
| RABOBANK NEDERLANDS AUST | 11-Apr-24 | 5.50 | A+ | 4.68 | 0.00 | -0.02 | 4.68 | 4.66 |
| COMMONWEALTH BANK | 27-May-24 | 4.75 | 4.59 | 0.00 | 0.01 | 4.59 | 4.58 | |
| AURIZON NETWORK | 21-Jun-24 | 4.00 | BBB+ | 5.14 | 0.00 | 0.00 | 5.14 | 5.13 |
| MACQUARIE BANK | 7-Aug-24 | 1.75 | A+ | 4.69 | 0.04 | 0.03 | 4.69 | 4.64 |
| WELLS FARGO | 27-Aug-24 | 4.75 | BBB+ | 5.10 | -0.07 | -0.08 | 5.16 | 5.10 |
| WOOLWORTHS | 20-May-25 | 1.85 | BBB | 4.83 | 0.00 | 0.10 | 4.83 | 4.79 |
| UNIVERSITY OF SYDNEY | 28-Aug-25 | 3.75 | 4.66 | -0.04 | 0.04 | 4.67 | 4.65 | |
| NBN CO | 3-Dec-25 | 1.00 | 4.98 | -0.05 | 0.13 | 5.01 | 4.97 | |
| APPLE | 10-Jun-26 | 3.60 | AA+ | 4.65 | -0.06 | 0.16 | 4.68 | 4.63 |
| COMMONWEALTH BANK | 11-Jun-26 | 4.20 | AA- | 4.85 | -0.10 | 0.11 | 4.91 | 4.84 |
| ANZ BANK | 22-Jul-26 | 4.00 | AA- | 4.85 | -0.11 | 0.10 | 4.92 | 4.84 |
| NBN CO | 28-Sep-26 | 4.75 | 4.95 | -0.11 | 0.12 | 4.98 | 4.93 | |
| QANTAS | 12-Oct-26 | 4.75 | NR | 5.61 | -0.07 | 0.20 | 5.65 | 5.59 |
| AUST. PACIFIC AIRPORTS | 4-Nov-26 | 3.75 | BBB+ | 5.19 | -0.08 | 0.17 | 5.23 | 5.17 |
| WSO FINANCE | 1-Dec-26 | 4.00 | A+ | 4.88 | -0.08 | 0.19 | 4.92 | 4.86 |
| WSO FINANCE | 31-Mar-27 | 4.50 | 5.33 | -0.08 | 0.15 | 5.37 | 5.30 | |
| NBN CO | 14-Apr-27 | 4.20 | 5.01 | -0.12 | 0.16 | 5.05 | 4.98 | |
| PACIFIC NATIONAL FINANCE | 12-May-27 | 5.40 | BBB- | 6.99 | -0.09 | 0.16 | 7.04 | 6.96 |
| LENDLEASE | 27-Oct-27 | 3.40 | 6.67 | -0.09 | 0.21 | 6.73 | 6.63 | |
| FONTERRA | 2-Nov-27 | 4.00 | A- | 5.21 | -0.09 | 0.23 | 5.26 | 5.17 |
| WOOLWORTHS | 15-Nov-27 | 1.85 | BBB | 4.91 | -0.08 | 0.18 | 4.95 | 4.88 |
| AUSTRALIA POST | 8-Dec-27 | 4.99 | 5.11 | -0.09 | 0.18 | 5.17 | 5.08 | |
| MACQUARIE GROUP | 15-Dec-27 | 4.15 | BBB+ | 5.89 | -0.12 | 0.18 | 5.98 | 5.89 |
| NBN CO | 2-Jun-28 | 2.15 | 5.27 | -0.14 | 0.23 | 5.33 | 5.23 | |
| WESFARMERS | 23-Jun-28 | 1.94 | A- | 5.22 | -0.09 | 0.25 | 5.28 | 5.17 |
| AUSNET | 21-Aug-28 | 4.20 | BBB+ | 5.67 | -0.09 | 0.24 | 5.73 | 5.62 |
| QANTAS | 27-Sep-28 | 3.15 | 5.96 | -0.09 | 0.31 | 6.03 | 5.92 | |
| AIRSERVICES AUST | 15-Nov-28 | 5.40 | 4.78 | -0.09 | 0.24 | 4.84 | 4.74 | |
| AUSNET | 31-Jul-29 | 2.60 | BBB+ | 6.05 | -0.16 | 0.20 | 6.18 | 5.99 |
| QANTAS | 27-Nov-29 | 2.95 | 6.40 | -0.07 | 0.37 | 6.45 | 6.34 | |
| WOOLWORTHS | 20-May-30 | 2.80 | BBB | 5.80 | -0.16 | 0.27 | 5.94 | 5.79 |
| QANTAS | 9-Sep-30 | 5.25 | 6.39 | -0.08 | 0.37 | 6.45 | 6.33 | |
| NBN CO | 16-Dec-30 | 2.20 | 5.85 | -0.11 | 0.33 | 5.94 | 5.78 | |
| BRISBANE AIRPORT | 30-Dec-30 | 4.50 | BBB | 6.03 | -0.08 | 0.31 | 6.09 | 5.96 |
| LENDLEASE | 31-Mar-31 | 3.70 | 7.86 | 0.05 | 0.34 | 7.86 | 7.74 | |
| WESFARMERS | 23-Jun-31 | 2.55 | A- | 5.94 | -0.06 | 0.36 | 5.99 | 5.87 |
| WOOLWORTHS | 15-Nov-31 | 2.75 | BBB | 6.10 | -0.14 | 0.30 | 6.23 | 6.06 |
| AUST. PACIFIC AIRPORTS (BRISBANE) | 25-Nov-31 | 3.76 | 6.20 | -0.10 | 0.39 | 6.29 | 6.13 |