Summary: Corporate bond spreads 5bps tighter on average; swap spreads narrow again; iTraxx higher.
Corporate spreads finished the week about 5bps tighter on average as corporate bond yields fell at the front of the curve and lagged the rises of their Commonwealth Government counterparts elsewhere along it. The majority of spreads’ week-on-week changes at the individual level were within a range of -11bps to -4bps and the only notable exception came from Australia Pacific Airports November 2026s (spread: 130bps, -17bps).
One of the two other main measures of corporate risk, swap-to-bond spreads, narrowed again. The other main measure, credit default swap premiums, increased on average. The Australian credit default swap index, the iTraxx Australia Series 39, finished 5.90 points higher at 77.40 points.
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- | 4.36 | -0.01 | -0.13 | 4.41 | 4.34 |
| SUNCORP-METWAY | 13-Sep-23 | 3.00 | 4.40 | -0.07 | -0.23 | 4.48 | 4.40 | |
| QANTAS | 10-Oct-23 | 4.40 | 4.96 | -0.13 | -0.39 | 5.09 | 4.95 | |
| AUSTRALIA POST | 13-Nov-23 | 5.50 | A+ | 4.49 | -0.06 | -0.23 | 4.57 | 4.48 |
| WESTPAC | 21-Nov-23 | 5.25 | 4.52 | -0.06 | -0.20 | 4.60 | 4.51 | |
| FONTERRA | 26-Feb-24 | 5.50 | A- | 4.76 | -0.09 | -0.29 | 4.83 | 4.73 |
| NATIONAL AUST. BANK | 11-Mar-24 | 5.00 | 4.65 | -0.07 | -0.28 | 4.73 | 4.62 | |
| RABOBANK NEDERLANDS AUST | 11-Apr-24 | 5.50 | A+ | 4.73 | -0.08 | -0.33 | 4.82 | 4.70 |
| COMMONWEALTH BANK | 27-May-24 | 4.75 | 4.73 | -0.10 | -0.29 | 4.84 | 4.70 | |
| AURIZON NETWORK | 21-Jun-24 | 4.00 | BBB+ | 5.22 | -0.09 | -0.35 | 5.31 | 5.19 |
| MACQUARIE BANK | 7-Aug-24 | 1.75 | A+ | 4.87 | -0.09 | -0.34 | 4.97 | 4.84 |
| WELLS FARGO | 27-Aug-24 | 4.75 | BBB+ | 5.24 | -0.07 | -0.35 | 5.32 | 5.19 |
| WOOLWORTHS | 20-May-25 | 1.85 | BBB | 4.82 | -0.12 | -0.35 | 4.90 | 4.76 |
| UNIVERSITY OF SYDNEY | 28-Aug-25 | 3.75 | 4.77 | -0.09 | -0.23 | 4.85 | 4.70 | |
| NBN CO | 3-Dec-25 | 1.00 | 4.96 | -0.07 | -0.25 | 5.02 | 4.89 | |
| APPLE | 10-Jun-26 | 3.60 | AA+ | 4.62 | -0.09 | -0.30 | 4.69 | 4.54 |
| COMMONWEALTH BANK | 11-Jun-26 | 4.20 | AA- | 4.85 | -0.05 | -0.27 | 4.88 | 4.74 |
| ANZ BANK | 22-Jul-26 | 4.00 | AA- | 4.86 | -0.05 | -0.25 | 4.89 | 4.75 |
| NBN CO | 28-Sep-26 | 4.75 | 4.88 | -0.06 | -0.22 | 4.92 | 4.79 | |
| QANTAS | 12-Oct-26 | 4.75 | NR | 5.61 | -0.08 | -0.33 | 5.67 | 5.53 |
| AUST. PACIFIC AIRPORTS | 4-Nov-26 | 3.75 | BBB+ | 5.17 | -0.17 | -0.32 | 5.22 | 5.09 |
| WSO FINANCE | 1-Dec-26 | 4.00 | A+ | 4.82 | -0.08 | -0.17 | 4.88 | 4.74 |
| WSO FINANCE | 31-Mar-27 | 4.50 | 5.30 | -0.11 | -0.19 | 5.35 | 5.22 | |
| NBN CO | 14-Apr-27 | 4.20 | 4.88 | -0.07 | -0.25 | 4.93 | 4.80 | |
| TELSTRA | 19-Apr-27 | 4.00 | A- | 4.77 | -0.08 | -0.25 | 4.83 | 4.69 |
| PACIFIC NATIONAL FINANCE | 12-May-27 | 5.40 | BBB- | 7.08 | -0.08 | -0.24 | 7.13 | 7.00 |
| LENDLEASE | 27-Oct-27 | 3.40 | 6.59 | -0.06 | -0.12 | 6.64 | 6.51 | |
| FONTERRA | 2-Nov-27 | 4.00 | A- | 5.14 | -0.11 | -0.17 | 5.18 | 5.06 |
| WOOLWORTHS | 15-Nov-27 | 1.85 | BBB | 4.92 | -0.08 | -0.34 | 4.97 | 4.84 |
| AUSTRALIA POST | 8-Dec-27 | 4.99 | 5.08 | -0.05 | -0.11 | 5.12 | 5.00 | |
| MACQUARIE GROUP | 15-Dec-27 | 4.15 | BBB+ | 5.96 | -0.08 | -0.21 | 6.03 | 5.90 |
| NBN CO | 2-Jun-28 | 2.15 | 5.17 | -0.11 | -0.22 | 5.26 | 5.08 | |
| WESFARMERS | 23-Jun-28 | 1.94 | A- | 5.10 | -0.04 | -0.28 | 5.12 | 5.01 |
| AUSNET | 21-Aug-28 | 4.20 | BBB+ | 5.60 | -0.03 | -0.18 | 5.62 | 5.51 |
| QANTAS | 27-Sep-28 | 3.15 | 5.94 | -0.05 | -0.24 | 5.98 | 5.85 | |
| AIRSERVICES AUST | 15-Nov-28 | 5.40 | 4.70 | -0.03 | -0.08 | 4.73 | 4.62 | |
| AUSNET | 31-Jul-29 | 2.60 | BBB+ | 5.95 | 0.00 | -0.09 | 5.95 | 5.84 |
| QANTAS | 27-Nov-29 | 2.95 | 6.27 | 0.01 | -0.10 | 6.27 | 6.14 | |
| WOOLWORTHS | 20-May-30 | 2.80 | BBB | 5.67 | 0.02 | -0.12 | 5.67 | 5.54 |
| QANTAS | 9-Sep-30 | 5.25 | 6.27 | 0.02 | -0.05 | 6.27 | 6.13 | |
| NBN CO | 16-Dec-30 | 2.20 | 5.69 | 0.03 | -0.08 | 5.69 | 5.55 | |
| BRISBANE AIRPORT | 30-Dec-30 | 4.50 | BBB | 5.92 | 0.03 | -0.11 | 5.92 | 5.79 |
| LENDLEASE | 31-Mar-31 | 3.70 | 7.62 | 0.11 | 0.12 | 7.62 | 7.46 | |
| WESFARMERS | 23-Jun-31 | 2.55 | A- | 5.74 | 0.04 | -0.06 | 5.74 | 5.59 |
| WOOLWORTHS | 15-Nov-31 | 2.75 | BBB | 5.93 | 0.05 | -0.10 | 5.93 | 5.78 |