Summary: Corporate bond spreads wider; swap spreads widen; iTraxx down again.
Corporate spreads finished the week about 7bps wider on average as corporate bond yields lagged the falls of their Commonwealth Government counterparts. The majority of spreads’ week-on-week changes at the individual level were within a range of -2bps to +3bps and the exceptions were limited to a short-dated line.
One of the two other main measures of corporate risk, swap-to-bond spreads, widened.
The other main measure, credit default swap premiums, again decreased on average. The Australian credit default swap index, the iTraxx Australia Series 39, finished 5.00 points lower at 74.50 points.
AUSTRALIAN CORPORATE BONDS
| ISSUER | MATURITY | COUPON (%) | RATING | CLOSING YIELD | Δ WEEK | Δ MONTH | WEEK HIGH | WEEK LOW |
|---|---|---|---|---|---|---|---|---|
| FONTERRA | 26-Feb-24 | 5.50 | A- | 4.76 | -0.08 | 0.11 | 4.84 | 4.76 |
| NATIONAL AUST. BANK | 11-Mar-24 | 5.00 | 4.75 | -0.03 | 0.20 | 4.78 | 4.75 | |
| COMMONWEALTH BANK | 27-May-24 | 4.75 | 4.82 | -0.04 | 0.23 | 4.87 | 4.82 | |
| AURIZON NETWORK | 21-Jun-24 | 4.00 | BBB+ | 5.42 | -0.12 | 0.28 | 5.54 | 5.42 |
| WOOLWORTHS | 20-May-25 | 1.85 | BBB | 5.02 | -0.15 | 0.19 | 5.21 | 5.02 |
| UNIVERSITY OF SYDNEY | 28-Aug-25 | 3.75 | 4.91 | -0.12 | 0.25 | 5.08 | 4.91 | |
| NBN CO | 3-Dec-25 | 1.00 | 5.19 | -0.11 | 0.21 | 5.38 | 5.19 | |
| APPLE | 10-Jun-26 | 3.60 | AA+ | 4.74 | -0.13 | 0.09 | 4.92 | 4.74 |
| COMMONWEALTH BANK | 11-Jun-26 | 4.20 | AA- | 5.06 | -0.13 | 0.21 | 5.25 | 5.06 |
| ANZ BANK | 22-Jul-26 | 4.00 | AA- | 5.05 | -0.13 | 0.21 | 5.25 | 5.05 |
| NBN CO | 28-Sep-26 | 4.75 | 5.16 | -0.13 | 0.21 | 5.35 | 5.16 | |
| QANTAS | 12-Oct-26 | 4.75 | NR | 5.76 | -0.15 | 0.15 | 5.95 | 5.76 |
| AUST. PACIFIC AIRPORTS | 4-Nov-26 | 3.75 | BBB+ | 5.32 | -0.16 | 0.13 | 5.53 | 5.32 |
| WSO FINANCE | 1-Dec-26 | 4.00 | A+ | 5.03 | -0.15 | 0.15 | 5.23 | 5.03 |
| WSO FINANCE | 31-Mar-27 | 4.50 | 5.41 | -0.15 | 0.08 | 5.61 | 5.41 | |
| NBN CO | 14-Apr-27 | 4.20 | 5.15 | -0.15 | 0.15 | 5.36 | 5.15 | |
| PACIFIC NATIONAL FINANCE | 12-May-27 | 5.40 | BBB- | 7.05 | -0.16 | 0.06 | 7.26 | 7.05 |
| LONSDALE FINANCE | 15-Oct-27 | 2.10 | 5.67 | -0.18 | 0.04 | 5.90 | 5.67 | |
| LENDLEASE | 27-Oct-27 | 3.40 | 6.77 | -0.16 | 0.10 | 6.98 | 6.77 | |
| FONTERRA | 2-Nov-27 | 4.00 | A- | 5.22 | -0.13 | 0.01 | 5.43 | 5.22 |
| WOOLWORTHS | 15-Nov-27 | 1.85 | BBB | 5.04 | -0.21 | 0.13 | 5.29 | 5.04 |
| AUSTRALIA POST | 8-Dec-27 | 4.99 | 5.22 | -0.15 | 0.11 | 5.43 | 5.22 | |
| NBN CO | 2-Jun-28 | 2.15 | 5.41 | -0.15 | 0.14 | 5.62 | 5.41 | |
| WESFARMERS | 23-Jun-28 | 1.94 | A- | 5.31 | -0.13 | 0.09 | 5.49 | 5.31 |
| AUSNET | 21-Aug-28 | 4.20 | BBB+ | 5.79 | -0.15 | 0.13 | 6.00 | 5.79 |
| QANTAS | 27-Sep-28 | 3.15 | 6.10 | -0.16 | 0.13 | 6.31 | 6.10 | |
| AIRSERVICES AUST | 15-Nov-28 | 5.40 | 4.95 | -0.15 | 0.17 | 5.15 | 4.95 | |
| AUSNET | 31-Jul-29 | 2.60 | BBB+ | 6.21 | -0.13 | 0.16 | 6.42 | 6.21 |
| QANTAS | 27-Nov-29 | 2.95 | 6.48 | -0.15 | 0.08 | 6.69 | 6.48 | |
| WOOLWORTHS | 20-May-30 | 2.80 | BBB | 5.83 | -0.17 | 0.04 | 6.06 | 5.83 |
| QANTAS | 9-Sep-30 | 5.25 | 6.48 | -0.15 | 0.08 | 6.68 | 6.48 | |
| NBN CO | 16-Dec-30 | 2.20 | 5.94 | -0.13 | 0.08 | 6.14 | 5.94 | |
| BRISBANE AIRPORT | 30-Dec-30 | 4.50 | BBB | 6.15 | -0.17 | 0.12 | 6.36 | 6.15 |
| LENDLEASE | 31-Mar-31 | 3.70 | 7.93 | -0.16 | 0.07 | 8.14 | 7.93 | |
| WESFARMERS | 23-Jun-31 | 2.55 | A- | 5.99 | -0.14 | 0.05 | 6.19 | 5.99 |
| WOOLWORTHS | 15-Nov-31 | 2.75 | BBB | 6.06 | -0.21 | -0.04 | 6.32 | 6.06 |
| AUST. PACIFIC AIRPORTS (BRISBANE) | 25-Nov-31 | 3.76 | 6.26 | -0.17 | 0.06 | 6.48 | 6.26 |