Summary: Corporate bond spreads unchanged on average; swap spreads tighter; iTraxx higher.
Corporate spreads finished the week unchanged on average as corporate bond yields generally 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 -12bps to +7bps and the only exception worthy of mention was Asciano’s May 2027s (spread: 328bps, +28bps).
One of the two other main measures of corporate risk, swap-to-bond spreads, tightened modestly. However, the other main measure, credit default swap premiums, increased. The Australian credit default swap index, the iTraxx Australia Series 37, finished 3.50 points higher at 87.00 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- | 4.08 | 0.02 | 0.01 | 4.10 | 4.06 |
| SUNCORP-METWAY | 13-Sep-23 | 3.00 | 4.24 | 0.12 | 0.11 | 4.24 | 4.13 | |
| QANTAS | 10-Oct-23 | 4.40 | 4.78 | 0.09 | 0.11 | 4.78 | 4.71 | |
| AUSTRALIA POST | 13-Nov-23 | 5.50 | A+ | 4.18 | 0.11 | 0.13 | 4.18 | 4.09 |
| WESTPAC | 21-Nov-23 | 5.25 | 4.19 | 0.10 | 0.14 | 4.19 | 4.11 | |
| FONTERRA | 26-Feb-24 | 5.50 | A- | 4.28 | 0.15 | 0.18 | 4.28 | 4.15 |
| NATIONAL AUST. BANK | 11-Mar-24 | 5.00 | 4.27 | 0.12 | 0.08 | 4.29 | 4.15 | |
| RABOBANK NEDERLANDS AUST | 11-Apr-24 | 5.50 | A+ | 4.42 | 0.12 | 0.17 | 4.44 | 4.32 |
| COMMONWEALTH BANK | 27-May-24 | 4.75 | 4.27 | 0.15 | 0.14 | 4.27 | 4.14 | |
| AURIZON NETWORK | 21-Jun-24 | 4.00 | BBB+ | 4.70 | 0.18 | 0.22 | 4.70 | 4.55 |
| MACQUARIE BANK | 7-Aug-24 | 1.75 | A+ | 4.46 | 0.10 | 0.09 | 4.48 | 4.39 |
| WELLS FARGO | 27-Aug-24 | 4.75 | BBB+ | 4.98 | 0.19 | 0.18 | 4.98 | 4.83 |
| WOOLWORTHS | 20-May-25 | 1.85 | BBB | 4.36 | 0.23 | 0.20 | 4.37 | 4.19 |
| UNIVERSITY OF SYDNEY | 28-Aug-25 | 3.75 | 4.22 | 0.24 | 0.11 | 4.23 | 4.05 | |
| NBN CO | 3-Dec-25 | 1.00 | 4.53 | 0.28 | 0.17 | 4.53 | 4.32 | |
| APPLE | 10-Jun-26 | 3.60 | AA+ | 4.17 | 0.24 | 0.14 | 4.19 | 3.99 |
| COMMONWEALTH BANK | 11-Jun-26 | 4.20 | AA- | 4.44 | 0.21 | 0.09 | 4.47 | 4.28 |
| ANZ BANK | 22-Jul-26 | 4.00 | AA- | 4.43 | 0.20 | 0.10 | 4.46 | 4.28 |
| NBN CO | 28-Sep-26 | 4.75 | 4.51 | 0.28 | 0.13 | 4.51 | 4.29 | |
| QANTAS | 12-Oct-26 | 4.75 | NR | 5.29 | 0.23 | 0.08 | 5.33 | 5.12 |
| AUST. PACIFIC AIRPORTS | 4-Nov-26 | 3.75 | BBB+ | 4.78 | 0.23 | 0.12 | 4.81 | 4.61 |
| WSO FINANCE | 1-Dec-26 | 4.00 | A+ | 4.35 | 0.23 | 0.06 | 4.39 | 4.18 |
| WSO FINANCE | 31-Mar-27 | 4.50 | 4.77 | 0.26 | 0.13 | 4.77 | 4.57 | |
| NBN CO | 14-Apr-27 | 4.20 | 4.57 | 0.22 | 4.57 | 4.60 | 4.41 | |
| TELSTRA | 19-Apr-27 | 4.00 | A- | 4.45 | 0.22 | 0.07 | 4.48 | 4.29 |
| PACIFIC NATIONAL FINANCE | 12-May-27 | 5.40 | BBB- | 6.47 | 0.58 | 0.58 | 6.47 | 6.09 |
| LENDLEASE | 27-Oct-27 | 3.40 | 5.92 | 0.22 | 0.15 | 5.96 | 5.76 | |
| FONTERRA | 2-Nov-27 | 4.00 | A- | 4.67 | 0.22 | 0.05 | 4.70 | 4.51 |
| WOOLWORTHS | 15-Nov-27 | 1.85 | BBB | 4.63 | 0.24 | 0.13 | 4.65 | 4.46 |
| AUSTRALIA POST | 8-Dec-27 | 4.99 | 4.62 | 0.22 | 4.62 | 4.66 | 4.46 | |
| MACQUARIE GROUP | 15-Dec-27 | 4.15 | BBB+ | 5.68 | 0.20 | 0.19 | 5.76 | 5.55 |
| NBN CO | 2-Jun-28 | 2.15 | 4.93 | 0.25 | 0.14 | 4.94 | 4.75 | |
| WESFARMERS | 23-Jun-28 | 1.94 | A- | 4.83 | 0.22 | 0.07 | 4.88 | 4.69 |
| AUSNET | 21-Aug-28 | 4.20 | BBB+ | 5.28 | 0.22 | 0.08 | 5.33 | 5.14 |
| QANTAS | 27-Sep-28 | 3.15 | 5.71 | 0.24 | 0.10 | 5.76 | 5.54 | |
| AIRSERVICES AUST | 15-Nov-28 | 5.40 | 4.36 | 0.21 | 0.07 | 4.40 | 4.21 | |
| AUSNET | 31-Jul-29 | 2.60 | BBB+ | 5.56 | 0.25 | 0.16 | 5.61 | 5.40 |
| QANTAS | 27-Nov-29 | 2.95 | 6.13 | 0.28 | 0.17 | 6.17 | 5.94 | |
| WOOLWORTHS | 20-May-30 | 2.80 | BBB | 5.40 | 0.22 | 0.09 | 5.44 | 5.27 |
| QANTAS | 9-Sep-30 | 5.25 | 6.02 | 0.23 | 6.02 | 6.06 | 5.88 | |
| NBN CO | 16-Dec-30 | 2.20 | 5.40 | 0.22 | 5.40 | 5.44 | 5.28 | |
| BRISBANE AIRPORT | 30-Dec-30 | 4.50 | BBB | 5.60 | 0.22 | 0.07 | 5.64 | 5.47 |
| LENDLEASE | 31-Mar-31 | 3.70 | 7.03 | 0.23 | 0.25 | 7.07 | 6.89 | |
| WESFARMERS | 23-Jun-31 | 2.55 | A- | 5.46 | 0.22 | 0.09 | 5.50 | 5.34 |
| WOOLWORTHS | 15-Nov-31 | 2.75 | BBB | 5.61 | 0.22 | 0.03 | 5.65 | 5.49 |