Summary: Corporate bond spreads unchanged; swap spreads wider; iTraxx lower.
Corporate spreads finished the week unchanged 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 -3bps to +2bps and Rabobank’s April 2024 line (spread: 70bps, +9bps) was the only noteworthy exception.
One of the two other main measures of corporate risk, swap-to-bond spreads, were essentially unchanged across the curve. The other main measure, credit default swap premiums, decreased on average. The Australian credit default swap index, the iTraxx Australia Series 39, finished 5.50 points lower at 84.00 points.
AUSTRALIAN CORPORATE BONDS
| ISSUER | MATURITY | COUPON (%) | RATING | CLOSING YIELD | Δ WEEK | Δ MONTH | WEEK HIGH | WEEK LOW |
|---|---|---|---|---|---|---|---|---|
| SUNCORP-METWAY | 13-Sep-23 | 3.00 | 4.35 | -0.06 | -0.22 | 4.35 | 4.35 | |
| QANTAS | 10-Oct-23 | 4.40 | 4.89 | -0.02 | -0.32 | 4.90 | 4.89 | |
| AUSTRALIA POST | 13-Nov-23 | 5.50 | A+ | 4.41 | -0.02 | -0.26 | 4.41 | 4.41 |
| WESTPAC | 21-Nov-23 | 5.25 | 4.41 | -0.05 | -0.28 | 4.43 | 4.41 | |
| FONTERRA | 26-Feb-24 | 5.50 | A- | 4.65 | -0.02 | -0.34 | 4.66 | 4.64 |
| NATIONAL AUST. BANK | 11-Mar-24 | 5.00 | 4.57 | -0.04 | -0.30 | 4.57 | 4.56 | |
| RABOBANK NEDERLANDS AUST | 11-Apr-24 | 5.50 | A+ | 4.75 | 0.07 | -0.21 | 4.76 | 4.71 |
| COMMONWEALTH BANK | 27-May-24 | 4.75 | 4.62 | -0.04 | -0.34 | 4.64 | 4.62 | |
| AURIZON NETWORK | 21-Jun-24 | 4.00 | BBB+ | 5.13 | -0.02 | -0.34 | 5.15 | 5.12 |
| MACQUARIE BANK | 7-Aug-24 | 1.75 | A+ | 4.81 | 0.02 | -0.31 | 4.83 | 4.80 |
| WELLS FARGO | 27-Aug-24 | 4.75 | BBB+ | 5.23 | 0.03 | -0.29 | 5.25 | 5.19 |
| WOOLWORTHS | 20-May-25 | 1.85 | BBB | 4.78 | -0.02 | -0.28 | 4.81 | 4.74 |
| UNIVERSITY OF SYDNEY | 28-Aug-25 | 3.75 | 4.69 | -0.07 | -0.28 | 4.72 | 4.65 | |
| NBN CO | 3-Dec-25 | 1.00 | 4.91 | -0.02 | -0.25 | 4.94 | 4.86 | |
| APPLE | 10-Jun-26 | 3.60 | AA+ | 4.61 | -0.03 | -0.18 | 4.65 | 4.57 |
| COMMONWEALTH BANK | 11-Jun-26 | 4.20 | AA- | 4.83 | -0.03 | -0.20 | 4.87 | 4.79 |
| ANZ BANK | 22-Jul-26 | 4.00 | AA- | 4.83 | -0.04 | -0.21 | 4.87 | 4.78 |
| NBN CO | 28-Sep-26 | 4.75 | 4.89 | -0.04 | -0.17 | 4.93 | 4.85 | |
| QANTAS | 12-Oct-26 | 4.75 | NR | 5.56 | -0.04 | -0.21 | 5.60 | 5.52 |
| AUST. PACIFIC AIRPORTS | 4-Nov-26 | 3.75 | BBB+ | 5.12 | -0.04 | -0.33 | 5.17 | 5.08 |
| WSO FINANCE | 1-Dec-26 | 4.00 | A+ | 4.82 | -0.04 | -0.15 | 4.87 | 4.78 |
| WSO FINANCE | 31-Mar-27 | 4.50 | 5.31 | -0.04 | -0.17 | 5.36 | 5.26 | |
| NBN CO | 14-Apr-27 | 4.20 | 4.90 | -0.04 | -0.16 | 4.95 | 4.85 | |
| TELSTRA | 19-Apr-27 | 4.00 | A- | 4.78 | -0.04 | -0.14 | 4.83 | 4.73 |
| PACIFIC NATIONAL FINANCE | 12-May-27 | 5.40 | BBB- | 6.94 | -0.07 | -0.30 | 6.99 | 6.89 |
| LENDLEASE | 27-Oct-27 | 3.40 | 6.60 | -0.05 | -0.11 | 6.66 | 6.56 | |
| FONTERRA | 2-Nov-27 | 4.00 | A- | 5.15 | -0.05 | -0.16 | 5.20 | 5.10 |
| WOOLWORTHS | 15-Nov-27 | 1.85 | BBB | 4.79 | -0.04 | -0.34 | 4.85 | 4.74 |
| AUSTRALIA POST | 8-Dec-27 | 4.99 | 5.09 | -0.05 | -0.10 | 5.15 | 5.05 | |
| MACQUARIE GROUP | 15-Dec-27 | 4.15 | BBB+ | 5.91 | -0.07 | -0.22 | 5.96 | 5.86 |
| NBN CO | 2-Jun-28 | 2.15 | 5.11 | -0.06 | -0.21 | 5.17 | 5.06 | |
| WESFARMERS | 23-Jun-28 | 1.94 | A- | 5.08 | -0.08 | -0.15 | 5.17 | 5.06 |
| AUSNET | 21-Aug-28 | 4.20 | BBB+ | 5.59 | -0.06 | -0.11 | 5.66 | 5.55 |
| QANTAS | 27-Sep-28 | 3.15 | 5.83 | -0.12 | -0.20 | 5.90 | 5.78 | |
| AIRSERVICES AUST | 15-Nov-28 | 5.40 | 4.66 | -0.06 | -0.12 | 4.72 | 4.61 | |
| AUSNET | 31-Jul-29 | 2.60 | BBB+ | 5.95 | -0.06 | -0.04 | 6.03 | 5.90 |
| QANTAS | 27-Nov-29 | 2.95 | 6.20 | -0.06 | -0.08 | 6.28 | 6.15 | |
| WOOLWORTHS | 20-May-30 | 2.80 | BBB | 5.61 | -0.06 | -0.09 | 5.70 | 5.57 |
| QANTAS | 9-Sep-30 | 5.25 | 6.20 | -0.07 | -0.05 | 6.29 | 6.15 | |
| NBN CO | 16-Dec-30 | 2.20 | 5.63 | -0.07 | -0.03 | 5.72 | 5.58 | |
| BRISBANE AIRPORT | 30-Dec-30 | 4.50 | BBB | 5.87 | -0.12 | -0.03 | 5.98 | 5.84 |
| LENDLEASE | 31-Mar-31 | 3.70 | 7.63 | -0.12 | 0.12 | 7.73 | 7.58 | |
| WESFARMERS | 23-Jun-31 | 2.55 | A- | 5.73 | -0.07 | -0.02 | 5.82 | 5.68 |
| WOOLWORTHS | 15-Nov-31 | 2.75 | BBB | 5.90 | -0.02 | -0.03 | 5.97 | 5.83 |