Summary: Corporate bond spreads 1bp wider; swap spreads almost unchanged; iTraxx higher.
Corporate spreads finished the week about 1bp wider on average as corporate bond yields basically 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 -5bps to -1bp and the only notable exception came from Asciano May 2027s (spread: 309bps, -12bps).
One of the two other main measures of corporate risk, swap-to-bond spreads, barely changed. The other main measure, credit default swap premiums, increased modestly on average. The Australian credit default swap index, the iTraxx Australia Series 39, finished 3.10 points higher at 80.50 points.
In ratings news, S&P revised La Trobe University’s AA- credit rating from “stable” to “negative”.
Moody’s upgraded Rio Tinto from A2 to A1.
AUSTRALIAN CORPORATE BONDS
| ISSUER | MATURITY | COUPON (%) | RATING | CLOSING YIELD | Δ WEEK | Δ MONTH | WEEK HIGH | WEEK LOW |
|---|---|---|---|---|---|---|---|---|
| ANZ BANK | 16-Aug-23 | 5.00 | AA- | 4.35 | 0.00 | -0.04 | 4.36 | 4.35 |
| SUNCORP-METWAY | 13-Sep-23 | 3.00 | 4.39 | -0.01 | -0.14 | 4.40 | 4.39 | |
| QANTAS | 10-Oct-23 | 4.40 | 4.93 | -0.03 | -0.31 | 4.96 | 4.93 | |
| AUSTRALIA POST | 13-Nov-23 | 5.50 | A+ | 4.46 | -0.03 | -0.20 | 4.49 | 4.46 |
| WESTPAC | 21-Nov-23 | 5.25 | 4.49 | -0.03 | -0.17 | 4.52 | 4.49 | |
| FONTERRA | 26-Feb-24 | 5.50 | A- | 4.73 | -0.02 | -0.32 | 4.76 | 4.72 |
| NATIONAL AUST. BANK | 11-Mar-24 | 5.00 | 4.62 | -0.03 | -0.33 | 4.65 | 4.61 | |
| RABOBANK NEDERLANDS AUST | 11-Apr-24 | 5.50 | A+ | 4.70 | -0.03 | -0.40 | 4.73 | 4.69 |
| COMMONWEALTH BANK | 27-May-24 | 4.75 | 4.69 | -0.04 | -0.40 | 4.73 | 4.68 | |
| AURIZON NETWORK | 21-Jun-24 | 4.00 | BBB+ | 5.17 | -0.05 | -0.48 | 5.22 | 5.15 |
| MACQUARIE BANK | 7-Aug-24 | 1.75 | A+ | 4.84 | -0.03 | -0.48 | 4.87 | 4.82 |
| WELLS FARGO | 27-Aug-24 | 4.75 | BBB+ | 5.21 | -0.03 | -0.48 | 5.24 | 5.18 |
| WOOLWORTHS | 20-May-25 | 1.85 | BBB | 4.79 | -0.03 | -0.56 | 4.82 | 4.74 |
| UNIVERSITY OF SYDNEY | 28-Aug-25 | 3.75 | 4.73 | -0.03 | -0.48 | 4.77 | 4.68 | |
| NBN CO | 3-Dec-25 | 1.00 | 4.89 | -0.07 | -0.53 | 4.96 | 4.87 | |
| APPLE | 10-Jun-26 | 3.60 | AA+ | 4.58 | -0.04 | -0.55 | 4.62 | 4.52 |
| COMMONWEALTH BANK | 11-Jun-26 | 4.20 | AA- | 4.81 | -0.04 | -0.57 | 4.85 | 4.75 |
| ANZ BANK | 22-Jul-26 | 4.00 | AA- | 4.81 | -0.04 | -0.57 | 4.86 | 4.75 |
| NBN CO | 28-Sep-26 | 4.75 | 4.84 | -0.04 | -0.52 | 4.88 | 4.77 | |
| QANTAS | 12-Oct-26 | 4.75 | NR | 5.52 | -0.09 | -0.56 | 5.61 | 5.49 |
| AUST. PACIFIC AIRPORTS | 4-Nov-26 | 3.75 | BBB+ | 5.08 | -0.09 | -0.69 | 5.17 | 5.05 |
| WSO FINANCE | 1-Dec-26 | 4.00 | A+ | 4.78 | -0.04 | -0.50 | 4.82 | 4.71 |
| WSO FINANCE | 31-Mar-27 | 4.50 | 5.26 | -0.04 | -0.52 | 5.30 | 5.19 | |
| NBN CO | 14-Apr-27 | 4.20 | 4.84 | -0.04 | -0.53 | 4.88 | 4.77 | |
| TELSTRA | 19-Apr-27 | 4.00 | A- | 4.73 | -0.04 | -0.54 | 4.77 | 4.66 |
| PACIFIC NATIONAL FINANCE | 12-May-27 | 5.40 | BBB- | 6.91 | -0.16 | -0.68 | 7.08 | 6.88 |
| LENDLEASE | 27-Oct-27 | 3.40 | 6.55 | -0.04 | -0.48 | 6.59 | 6.48 | |
| FONTERRA | 2-Nov-27 | 4.00 | A- | 5.10 | -0.04 | -0.52 | 5.14 | 5.03 |
| WOOLWORTHS | 15-Nov-27 | 1.85 | BBB | 4.86 | -0.06 | -0.67 | 4.92 | 4.81 |
| AUSTRALIA POST | 8-Dec-27 | 4.99 | 5.04 | -0.04 | -0.46 | 5.08 | 4.97 | |
| MACQUARIE GROUP | 15-Dec-27 | 4.15 | BBB+ | 5.92 | -0.04 | -0.57 | 5.96 | 5.85 |
| NBN CO | 2-Jun-28 | 2.15 | 5.08 | -0.08 | -0.54 | 5.17 | 5.04 | |
| WESFARMERS | 23-Jun-28 | 1.94 | A- | 5.05 | -0.05 | -0.58 | 5.10 | 4.98 |
| AUSNET | 21-Aug-28 | 4.20 | BBB+ | 5.54 | -0.06 | -0.52 | 5.60 | 5.47 |
| QANTAS | 27-Sep-28 | 3.15 | 5.83 | -0.11 | -0.52 | 5.94 | 5.79 | |
| AIRSERVICES AUST | 15-Nov-28 | 5.40 | 4.66 | -0.05 | -0.43 | 4.70 | 4.58 | |
| AUSNET | 31-Jul-29 | 2.60 | BBB+ | 5.89 | -0.06 | -0.48 | 5.95 | 5.81 |
| QANTAS | 27-Nov-29 | 2.95 | 6.14 | -0.13 | -0.45 | 6.27 | 6.10 | |
| WOOLWORTHS | 20-May-30 | 2.80 | BBB | 5.55 | -0.12 | -0.54 | 5.67 | 5.50 |
| QANTAS | 9-Sep-30 | 5.25 | 6.14 | -0.12 | -0.41 | 6.27 | 6.10 | |
| NBN CO | 16-Dec-30 | 2.20 | 5.52 | -0.17 | -0.41 | 5.69 | 5.48 | |
| BRISBANE AIRPORT | 30-Dec-30 | 4.50 | BBB | 5.86 | -0.07 | -0.43 | 5.92 | 5.78 |
| LENDLEASE | 31-Mar-31 | 3.70 | 7.54 | -0.08 | -0.29 | 7.62 | 7.45 | |
| WESFARMERS | 23-Jun-31 | 2.55 | A- | 5.67 | -0.07 | -0.44 | 5.74 | 5.60 |
| WOOLWORTHS | 15-Nov-31 | 2.75 | BBB | 5.86 | -0.07 | -0.42 | 5.93 | 5.78 |