Summary: Corporate bond spreads 2bps narrower; swap spreads widen; iTraxx up.
Corporate spreads finished the week 2bps narrower as corporate bond yields lagged the rises of their Commonwealth Government counterparts. The majority of spreads’ week-on-week changes at the individual level were within a range of -8bps to 2bps and the only material exceptions were a few lines which are close to maturity.
One of the two other main measures of corporate risk, swap-to-bond spreads, widened a touch. The other main measure, credit default swap premiums, increased on average. The Australian credit default swap index, the iTraxx Australia Series 39, finished 6.00 points higher at 100.00 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+ | 4.40 | 0.02 | -0.01 | 4.40 | 4.38 |
| WESTPAC | 21-Nov-23 | 5.25 | 4.36 | 0.01 | -0.02 | 4.36 | 4.34 | |
| FONTERRA | 26-Feb-24 | 5.50 | A- | 4.71 | 0.05 | 0.04 | 4.72 | 4.65 |
| NATIONAL AUST. BANK | 11-Mar-24 | 5.00 | 4.61 | 0.06 | 0.05 | 4.62 | 4.54 | |
| COMMONWEALTH BANK | 27-May-24 | 4.75 | 4.69 | 0.10 | 0.10 | 4.71 | 4.59 | |
| AURIZON NETWORK | 21-Jun-24 | 4.00 | BBB+ | 5.24 | 0.10 | 0.11 | 5.26 | 5.14 |
| WOOLWORTHS | 20-May-25 | 1.85 | BBB | 5.01 | 0.18 | 0.26 | 5.04 | 4.83 |
| UNIVERSITY OF SYDNEY | 28-Aug-25 | 3.75 | 4.86 | 0.20 | 0.26 | 4.89 | 4.65 | |
| NBN CO | 3-Dec-25 | 1.00 | 5.20 | 0.21 | 0.28 | 5.23 | 4.98 | |
| APPLE | 10-Jun-26 | 3.60 | AA+ | 4.90 | 0.25 | 0.33 | 4.93 | 4.65 |
| COMMONWEALTH BANK | 11-Jun-26 | 4.20 | AA- | 5.11 | 0.26 | 0.31 | 5.14 | 4.86 |
| ANZ BANK | 22-Jul-26 | 4.00 | AA- | 5.13 | 0.28 | 0.34 | 5.16 | 4.86 |
| NBN CO | 28-Sep-26 | 4.75 | 5.21 | 0.26 | 0.28 | 5.25 | 4.94 | |
| QANTAS | 12-Oct-26 | 4.75 | NR | 5.89 | 0.27 | 0.37 | 5.92 | 5.61 |
| AUST. PACIFIC AIRPORTS | 4-Nov-26 | 3.75 | BBB+ | 5.43 | 0.23 | 0.33 | 5.46 | 5.19 |
| WSO FINANCE | 1-Dec-26 | 4.00 | A+ | 5.16 | 0.28 | 0.38 | 5.19 | 4.88 |
| WSO FINANCE | 31-Mar-27 | 4.50 | 5.62 | 0.29 | 0.41 | 5.62 | 5.32 | |
| NBN CO | 14-Apr-27 | 4.20 | 5.30 | 0.29 | 0.37 | 5.33 | 5.00 | |
| PACIFIC NATIONAL FINANCE | 12-May-27 | 5.40 | BBB- | 7.25 | 0.26 | 0.39 | 7.28 | 6.98 |
| LONSDALE FINANCE | 15-Oct-27 | 2.10 | 5.82 | 0.19 | 0.35 | 5.86 | 5.62 | |
| LENDLEASE | 27-Oct-27 | 3.40 | 6.93 | 0.26 | 0.42 | 6.97 | 6.66 | |
| FONTERRA | 2-Nov-27 | 4.00 | A- | 5.42 | 0.21 | 0.37 | 5.45 | 5.19 |
| WOOLWORTHS | 15-Nov-27 | 1.85 | BBB | 5.21 | 0.30 | 0.47 | 5.25 | 4.90 |
| AUSTRALIA POST | 8-Dec-27 | 4.99 | 5.41 | 0.30 | 0.45 | 5.44 | 5.10 | |
| NBN CO | 2-Jun-28 | 2.15 | 5.58 | 0.30 | 0.43 | 5.61 | 5.26 | |
| WESFARMERS | 23-Jun-28 | 1.94 | A- | 5.48 | 0.26 | 0.45 | 5.52 | 5.20 |
| AUSNET | 21-Aug-28 | 4.20 | BBB+ | 5.97 | 0.31 | 0.51 | 6.01 | 5.65 |
| QANTAS | 27-Sep-28 | 3.15 | 6.28 | 0.31 | 0.52 | 6.32 | 5.95 | |
| AIRSERVICES AUST | 15-Nov-28 | 5.40 | 5.08 | 0.30 | 0.47 | 5.12 | 4.77 | |
| AUSNET | 31-Jul-29 | 2.60 | BBB+ | 6.37 | 0.32 | 0.50 | 6.41 | 6.03 |
| QANTAS | 27-Nov-29 | 2.95 | 6.73 | 0.32 | 0.62 | 6.77 | 6.38 | |
| WOOLWORTHS | 20-May-30 | 2.80 | BBB | 6.08 | 0.28 | 0.54 | 6.08 | 5.77 |
| QANTAS | 9-Sep-30 | 5.25 | 6.71 | 0.32 | 0.62 | 6.76 | 6.37 | |
| NBN CO | 16-Dec-30 | 2.20 | 6.17 | 0.32 | 0.56 | 6.21 | 5.83 | |
| BRISBANE AIRPORT | 30-Dec-30 | 4.50 | BBB | 6.38 | 0.35 | 0.60 | 6.43 | 6.01 |
| LENDLEASE | 31-Mar-31 | 3.70 | 8.13 | 0.27 | 0.75 | 8.18 | 7.83 | |
| WESFARMERS | 23-Jun-31 | 2.55 | A- | 6.25 | 0.31 | 0.65 | 6.30 | 5.92 |
| WOOLWORTHS | 15-Nov-31 | 2.75 | BBB | 6.42 | 0.32 | 0.63 | 6.42 | 6.07 |
| AUST. PACIFIC AIRPORTS (BRISBANE) | 25-Nov-31 | 3.76 | 6.52 | 0.32 | 0.64 | 6.56 | 6.18 |