Summary: Corporate bond spreads 1bp tighter; swap spreads unchanged; iTraxx lower again.
Corporate spreads finished the week about 1bp tighter on average as corporate bond yields slightly 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 +1bp and AusNet’s August 2028 line (spread: 158bps, -10bps) was the only noteworthy exception.
One of the two other main measures of corporate risk, swap-to-bond spreads, were again essentially unchanged across the curve. The other main measure, credit default swap premiums, again decreased on average. The Australian credit default swap index, the iTraxx Australia Series 39, finished 8.50 points lower at 75.50 points.
AUSTRALIAN CORPORATE BONDS
| ISSUER | MATURITY | COUPON (%) | RATING | CLOSING YIELD | Δ WEEK | Δ MONTH | WEEK HIGH | WEEK LOW |
|---|---|---|---|---|---|---|---|---|
| SUNCORP-METWAY | 13-Sep-23 | 3.00 | 4.33 | -0.02 | -0.14 | 4.35 | 4.33 | |
| QANTAS | 10-Oct-23 | 4.40 | 4.78 | -0.12 | -0.31 | 4.89 | 4.76 | |
| AUSTRALIA POST | 13-Nov-23 | 5.50 | A+ | 4.38 | -0.03 | -0.18 | 4.41 | 4.38 |
| WESTPAC | 21-Nov-23 | 5.25 | 4.41 | 0.00 | -0.18 | 4.41 | 4.40 | |
| FONTERRA | 26-Feb-24 | 5.50 | A- | 4.62 | -0.02 | -0.22 | 4.66 | 4.62 |
| NATIONAL AUST. BANK | 11-Mar-24 | 5.00 | 4.57 | 0.00 | -0.15 | 4.57 | 4.55 | |
| RABOBANK NEDERLANDS AUST | 11-Apr-24 | 5.50 | A+ | 4.69 | -0.06 | -0.11 | 4.75 | 4.69 |
| COMMONWEALTH BANK | 27-May-24 | 4.75 | 4.57 | -0.05 | -0.26 | 4.62 | 4.57 | |
| AURIZON NETWORK | 21-Jun-24 | 4.00 | BBB+ | 5.11 | -0.02 | -0.21 | 5.14 | 5.11 |
| MACQUARIE BANK | 7-Aug-24 | 1.75 | A+ | 4.68 | -0.13 | -0.28 | 4.81 | 4.68 |
| WELLS FARGO | 27-Aug-24 | 4.75 | BBB+ | 5.14 | -0.09 | -0.17 | 5.23 | 5.14 |
| WOOLWORTHS | 20-May-25 | 1.85 | BBB | 4.69 | -0.09 | -0.25 | 4.78 | 4.69 |
| UNIVERSITY OF SYDNEY | 28-Aug-25 | 3.75 | 4.59 | -0.10 | -0.27 | 4.69 | 4.59 | |
| NBN CO | 3-Dec-25 | 1.00 | 4.80 | -0.10 | -0.22 | 4.91 | 4.80 | |
| APPLE | 10-Jun-26 | 3.60 | AA+ | 4.49 | -0.13 | -0.22 | 4.61 | 4.49 |
| COMMONWEALTH BANK | 11-Jun-26 | 4.20 | AA- | 4.70 | -0.14 | -0.21 | 4.83 | 4.70 |
| ANZ BANK | 22-Jul-26 | 4.00 | AA- | 4.69 | -0.14 | -0.23 | 4.83 | 4.69 |
| NBN CO | 28-Sep-26 | 4.75 | 4.78 | -0.11 | -0.17 | 4.89 | 4.78 | |
| QANTAS | 12-Oct-26 | 4.75 | NR | 5.37 | -0.19 | -0.33 | 5.56 | 5.37 |
| AUST. PACIFIC AIRPORTS | 4-Nov-26 | 3.75 | BBB+ | 4.98 | -0.14 | -0.35 | 5.12 | 4.98 |
| WSO FINANCE | 1-Dec-26 | 4.00 | A+ | 4.65 | -0.17 | -0.25 | 4.82 | 4.65 |
| WSO FINANCE | 31-Mar-27 | 4.50 | 5.14 | -0.17 | -0.27 | 5.31 | 5.14 | |
| NBN CO | 14-Apr-27 | 4.20 | 4.78 | -0.12 | -0.17 | 4.90 | 4.78 | |
| TELSTRA | 19-Apr-27 | 4.00 | A- | 4.63 | -0.15 | -0.22 | 4.78 | 4.63 |
| PACIFIC NATIONAL FINANCE | 12-May-27 | 5.40 | BBB- | 6.78 | -0.16 | -0.37 | 6.94 | 6.78 |
| LENDLEASE | 27-Oct-27 | 3.40 | 6.42 | -0.19 | -0.24 | 6.60 | 6.42 | |
| FONTERRA | 2-Nov-27 | 4.00 | A- | 4.94 | -0.21 | -0.31 | 5.15 | 4.94 |
| WOOLWORTHS | 15-Nov-27 | 1.85 | BBB | 4.66 | -0.13 | -0.34 | 4.79 | 4.66 |
| AUSTRALIA POST | 8-Dec-27 | 4.99 | 4.88 | -0.21 | -0.25 | 5.09 | 4.88 | |
| MACQUARIE GROUP | 15-Dec-27 | 4.15 | BBB+ | 5.74 | -0.17 | -0.31 | 5.91 | 5.74 |
| NBN CO | 2-Jun-28 | 2.15 | 4.99 | -0.12 | -0.29 | 5.11 | 4.99 | |
| WESFARMERS | 23-Jun-28 | 1.94 | A- | 4.92 | -0.16 | -0.22 | 5.08 | 4.92 |
| AUSNET | 21-Aug-28 | 4.20 | BBB+ | 5.35 | -0.24 | -0.28 | 5.59 | 5.35 |
| QANTAS | 27-Sep-28 | 3.15 | 5.61 | -0.22 | -0.39 | 5.83 | 5.61 | |
| AIRSERVICES AUST | 15-Nov-28 | 5.40 | 4.50 | -0.16 | -0.24 | 4.66 | 4.50 | |
| AUSNET | 31-Jul-29 | 2.60 | BBB+ | 5.74 | -0.20 | -0.21 | 5.95 | 5.74 |
| QANTAS | 27-Nov-29 | 2.95 | 5.99 | -0.21 | -0.27 | 6.20 | 5.99 | |
| WOOLWORTHS | 20-May-30 | 2.80 | BBB | 5.46 | -0.16 | -0.19 | 5.61 | 5.46 |
| QANTAS | 9-Sep-30 | 5.25 | 5.97 | -0.23 | -0.27 | 6.20 | 5.97 | |
| NBN CO | 16-Dec-30 | 2.20 | 5.47 | -0.16 | -0.19 | 5.63 | 5.47 | |
| BRISBANE AIRPORT | 30-Dec-30 | 4.50 | BBB | 5.68 | -0.19 | -0.22 | 5.87 | 5.68 |
| LENDLEASE | 31-Mar-31 | 3.70 | 7.47 | -0.16 | -0.04 | 7.63 | 7.47 | |
| WESFARMERS | 23-Jun-31 | 2.55 | A- | 5.53 | -0.19 | -0.17 | 5.73 | 5.53 |
| WOOLWORTHS | 15-Nov-31 | 2.75 | BBB | 5.73 | -0.17 | -0.15 | 5.90 | 5.73 |