Summary: Corporate bond spreads unchanged on average; swap spreads widen; iTraxx declines.
Corporate spreads finished the week unchanged on average as corporate bond yields kept pace with the rises of their Commonwealth counterparts. The majority of spreads’ week-on-week changes at the individual level were within a range of -2bps to 8bps and the only noteworthy exception was Ausnet’s July 2029s (spread: 209bps, -5bps).
One of the two other main measures of corporate risk, swap-to-bond spreads, widened. The other main measure, credit default swap premiums, decreased a little on average. The Australian credit default swap index, the iTraxx Australia Series 39, finished 1.50 points lower at 77.00 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- | 4.42 | 0.03 | -0.11 | 4.42 | 4.38 |
| SUNCORP-METWAY | 13-Sep-23 | 3.00 | 4.57 | 0.02 | -0.09 | 4.57 | 4.52 | |
| QANTAS | 10-Oct-23 | 4.40 | 5.21 | 0.00 | -0.16 | 5.21 | 5.15 | |
| AUSTRALIA POST | 13-Nov-23 | 5.50 | A+ | 4.67 | 0.07 | -0.12 | 4.67 | 4.59 |
| WESTPAC | 21-Nov-23 | 5.25 | 4.69 | 0.11 | -0.09 | 4.69 | 4.59 | |
| FONTERRA | 26-Feb-24 | 5.50 | A- | 4.98 | 0.08 | -0.09 | 4.98 | 4.87 |
| NATIONAL AUST. BANK | 11-Mar-24 | 5.00 | 4.86 | 0.07 | -0.12 | 4.86 | 4.76 | |
| RABOBANK NEDERLANDS AUST | 11-Apr-24 | 5.50 | A+ | 4.96 | 0.03 | -0.13 | 4.96 | 4.84 |
| COMMONWEALTH BANK | 27-May-24 | 4.75 | 4.96 | 0.08 | -0.09 | 4.96 | 4.84 | |
| AURIZON NETWORK | 21-Jun-24 | 4.00 | BBB+ | 5.47 | 0.04 | -0.12 | 5.49 | 5.39 |
| MACQUARIE BANK | 7-Aug-24 | 1.75 | A+ | 5.12 | 0.06 | -0.14 | 5.12 | 5.00 |
| WELLS FARGO | 27-Aug-24 | 4.75 | BBB+ | 5.52 | 0.05 | -0.06 | 5.52 | 5.38 |
| WOOLWORTHS | 20-May-25 | 1.85 | BBB | 5.06 | 0.02 | -0.10 | 5.06 | 4.93 |
| UNIVERSITY OF SYDNEY | 28-Aug-25 | 3.75 | 4.97 | 0.07 | -0.07 | 4.97 | 4.83 | |
| NBN CO | 3-Dec-25 | 1.00 | 5.16 | 0.07 | -0.15 | 5.16 | 5.02 | |
| APPLE | 10-Jun-26 | 3.60 | AA+ | 4.79 | 0.01 | -0.13 | 4.79 | 4.64 |
| COMMONWEALTH BANK | 11-Jun-26 | 4.20 | AA- | 5.03 | 0.04 | -0.11 | 5.03 | 4.88 |
| ANZ BANK | 22-Jul-26 | 4.00 | AA- | 5.03 | 0.04 | -0.08 | 5.03 | 4.88 |
| NBN CO | 28-Sep-26 | 4.75 | 5.06 | 0.06 | -0.17 | 5.06 | 4.90 | |
| QANTAS | 12-Oct-26 | 4.75 | NR | 5.77 | 0.06 | -0.20 | 5.77 | 5.61 |
| AUST. PACIFIC AIRPORTS | 4-Nov-26 | 3.75 | BBB+ | 5.45 | 0.04 | -0.04 | 5.45 | 5.31 |
| WSO FINANCE | 1-Dec-26 | 4.00 | A+ | 4.97 | 0.06 | -0.08 | 4.97 | 4.81 |
| WSO FINANCE | 31-Mar-27 | 4.50 | 5.47 | 0.06 | -0.06 | 5.47 | 5.31 | |
| NBN CO | 14-Apr-27 | 4.20 | 5.06 | 0.06 | -0.28 | 5.06 | 4.90 | |
| TELSTRA | 19-Apr-27 | 4.00 | A- | 4.92 | 0.02 | -0.13 | 4.92 | 4.80 |
| PACIFIC NATIONAL FINANCE | 12-May-27 | 5.40 | BBB- | 7.24 | 0.03 | 0.01 | 7.24 | 7.11 |
| LENDLEASE | 27-Oct-27 | 3.40 | 6.71 | 0.06 | 0.01 | 6.71 | 6.55 | |
| FONTERRA | 2-Nov-27 | 4.00 | A- | 5.31 | 0.06 | -0.02 | 5.31 | 5.15 |
| WOOLWORTHS | 15-Nov-27 | 1.85 | BBB | 5.13 | -0.03 | -0.11 | 5.16 | 5.02 |
| AUSTRALIA POST | 8-Dec-27 | 4.99 | 5.19 | 0.06 | -0.06 | 5.19 | 5.03 | |
| MACQUARIE GROUP | 15-Dec-27 | 4.15 | BBB+ | 6.13 | 0.06 | -0.07 | 6.13 | 5.94 |
| NBN CO | 2-Jun-28 | 2.15 | 5.31 | 0.05 | -0.21 | 5.31 | 5.15 | |
| WESFARMERS | 23-Jun-28 | 1.94 | A- | 5.23 | -0.03 | -0.24 | 5.26 | 5.15 |
| AUSNET | 21-Aug-28 | 4.20 | BBB+ | 5.71 | 0.01 | -0.14 | 5.71 | 5.57 |
| QANTAS | 27-Sep-28 | 3.15 | 6.03 | 0.05 | -0.24 | 6.03 | 5.87 | |
| AIRSERVICES AUST | 15-Nov-28 | 5.40 | 4.78 | 0.05 | -0.07 | 4.78 | 4.62 | |
| AUSNET | 31-Jul-29 | 2.60 | BBB+ | 5.98 | -0.03 | -0.12 | 6.01 | 5.82 |
| QANTAS | 27-Nov-29 | 2.95 | 6.28 | 0.04 | -0.21 | 6.28 | 6.12 | |
| WOOLWORTHS | 20-May-30 | 2.80 | BBB | 5.70 | -0.05 | -0.12 | 5.75 | 5.59 |
| QANTAS | 9-Sep-30 | 5.25 | 6.25 | 0.03 | -0.27 | 6.25 | 6.10 | |
| NBN CO | 16-Dec-30 | 2.20 | 5.66 | 0.03 | -0.16 | 5.66 | 5.51 | |
| BRISBANE AIRPORT | 30-Dec-30 | 4.50 | BBB | 5.90 | -0.06 | -0.13 | 5.96 | 5.80 |
| LENDLEASE | 31-Mar-31 | 3.70 | 7.51 | 0.03 | -0.04 | 7.51 | 7.35 | |
| WESFARMERS | 23-Jun-31 | 2.55 | A- | 5.75 | -0.04 | -0.17 | 5.79 | 5.67 |
| WOOLWORTHS | 15-Nov-31 | 2.75 | BBB | 5.93 | -0.02 | -0.15 | 5.96 | 5.83 |