Summary: Corporate bond spreads unchanged on average; swap spreads wider; iTraxx down 9.0 points.
Corporate spreads finished the week unchanged on average as corporate yields generally kept pace with the falls of their Commonwealth counterparts. The majority of spreads’ week-on-week changes at the individual level were within a range of -9bps to 6bps. There were a couple of notable exceptions; Macquarie’s December 2027s (spread: 181bps, -27bps) found some favour with investors while Vicinity’s April 2027s (spread: 165bps, +17bps) was overlooked.
One of the two other main measures of corporate risk, swap-to-bond spreads, widened along the curve. The other measure, credit default swap premiums, decreased. The Australian credit default swap index, the iTraxx Australia Series 37, finished 9.00 points lower at 99.00 points.
Interested readers can find more details as well as other bond transactions in our tables via the link below.
| ISSUER | MATURITY | COUPON (%) | RATING | WEEK HIGH | WEEK LOW | CLOSING YIELD | Δ WEEK | Δ MONTH |
|---|---|---|---|---|---|---|---|---|
| Optus | 17-Jun-22 | 4.00 | A | 0.99 | 0.93 | 0.93 | -0.05 | 0.14 |
| GE Capital | 8-Aug-22 | 5.50 | BBB+ | 1.79 | 1.70 | 1.70 | -0.10 | 0.55 |
| Optus | 23-Aug-22 | 3.25 | A | 1.58 | 1.55 | 1.55 | -0.03 | 0.35 |
| Apple Inc | 28-Aug-22 | 3.70 | AA+ | 1.50 | 1.47 | 1.50 | 0.02 | 0.51 |
| Wells Fargo | 7-Sep-22 | 5.25 | A- | 1.88 | 1.85 | 1.88 | 0.01 | 0.43 |
| Melbourne Airport | 15-Sep-22 | 4.00 | BBB+ | 1.63 | 1.54 | 1.54 | -0.05 | 0.39 |
| Telstra | 16-Sep-22 | 4.00 | A | 1.75 | 1.73 | 1.75 | 0.04 | 0.49 |
| Stockland | 23-Nov-22 | 4.50 | A- | 1.98 | 1.86 | 1.86 | -0.09 | 0.40 |
| ANZ | 16-Aug-23 | 5.00 | AA- | 3.08 | 2.98 | 3.00 | -0.02 | 0.42 |
| Transpower NZ | 28-Aug-23 | 5.75 | AA- | 2.98 | 2.92 | 2.92 | -0.07 | 0.31 |
| Mirvac Finance | 18-Sep-23 | 3.50 | BBB+ | 3.26 | 3.16 | 3.16 | -0.08 | 0.35 |
| Qantas | 10-Oct-23 | 4.40 | BB+ | 4.06 | 3.98 | 4.00 | -0.04 | 0.36 |
| Australia Post | 13-Nov-23 | 5.50 | A+ | 3.08 | 3.03 | 3.05 | 0.00 | 0.29 |
| Westpac | 21-Nov-23 | 4.40 | AA- | 3.28 | 3.18 | 3.20 | -0.09 | 0.33 |
| Fonterra | 26-Feb-24 | 5.50 | A- | 3.53 | 3.44 | 3.46 | -0.04 | 0.33 |
| NAB | 11-Mar-24 | 5.00 | AA- | 3.45 | 3.36 | 3.38 | 0.01 | 0.32 |
| Rabobank Nederland (Aust) | 11-Apr-24 | 5.50 | A+ | 3.52 | 3.46 | 3.49 | -0.03 | 0.27 |
| CBA | 27-May-24 | 4.75 | AA- | 3.50 | 3.44 | 3.49 | 0.00 | 0.35 |
| AusNet | 21-Jun-24 | 4.00 | BBB+ | 4.15 | 4.05 | 4.08 | -0.05 | 0.28 |
| Macquarie Bank | 7-Aug-24 | 1.75 | A+ | 3.88 | 3.79 | 3.84 | -0.01 | 0.31 |
| Wells Fargo | 27-Aug-24 | 4.75 | A+ | 4.08 | 3.95 | 3.97 | -0.10 | 0.18 |
| University of Sydney | 28-Aug-25 | 3.75 | Aa1 | 3.73 | 3.61 | 3.65 | -0.06 | 0.03 |
| Apple Inc | 10-Jun-26 | 3.60 | AA+ | 3.93 | 3.81 | 3.83 | -0.09 | 0.17 |
| CBA | 11-Jun-26 | 4.20 | AA- | 4.12 | 3.99 | 4.02 | -0.06 | 0.23 |
| ANZ | 22-Jul-26 | 4.00 | AA- | 4.14 | 4.02 | 4.04 | -0.02 | 0.24 |
| Qantas | 12-Oct-26 | 4.75 | BB+ | 5.25 | 5.13 | 5.15 | -0.08 | 0.15 |
| Australia Pacific Airports | 4-Nov-26 | 3.75 | BBB+ | 4.66 | 4.53 | 4.56 | -0.08 | 0.11 |
| CBA | 17-Nov-26 | 3.25 | AA- | 4.12 | 3.98 | 3.98 | -0.12 | 0.17 |
| Australia Post | 1-Dec-26 | 4.00 | A+ | 4.01 | 3.89 | 3.91 | -0.05 | 0.12 |
| WSO Finance | 31-Mar-27 | 4.50 | A- | 4.49 | 4.37 | 4.40 | -0.08 | 0.15 |
| Telstra | 19-Apr-27 | 4.00 | A | 4.34 | 4.21 | 4.24 | -0.08 | 0.16 |
| Vicinity Centre | 26-Apr-27 | 4.00 | A | 4.60 | 4.50 | 4.60 | 0.12 | 0.29 |
| Dexus Finance | 11-May-27 | 4.25 | A3 | 4.43 | 4.35 | 4.35 | -0.05 | 0.12 |
| Asciano | 12-May-27 | 5.40 | BBB- | 5.71 | 5.56 | 5.59 | -0.09 | 0.23 |
| Fonterra | 2-Nov-27 | 4.00 | A- | 4.45 | 4.33 | 4.36 | -0.07 | 0.10 |
| Macquarie | 15-Dec-27 | 4.15 | BBB+ | 5.16 | 4.80 | 4.82 | -0.33 | -0.07 |
| AusNet | 21-Aug-28 | 4.20 | A- | 5.10 | 4.95 | 4.98 | -0.09 | 0.16 |