Summary: Corporate bond spreads 5bps tighter on average; swap spreads narrow; iTraxx lower.
Corporate spreads finished the week about 5bps tighter on average as corporate bond yields outpaced falls of their Commonwealth counterparts at the front of the curve and lagged rises elsewhere. The majority of spreads’ week-on-week changes at the individual level were within a range of -6bps to -2bps and the exceptions were not that notable.
One of the two other main measures of corporate risk, swap-to-bond spreads, narrowed. 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 71.50 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- | 4.37 | -0.05 | -0.14 | 4.41 | 4.37 |
| SUNCORP-METWAY | 13-Sep-23 | 3.00 | 4.47 | -0.10 | -0.14 | 4.56 | 4.47 | |
| QANTAS | 10-Oct-23 | 4.40 | 5.08 | -0.13 | -0.26 | 5.21 | 5.08 | |
| AUSTRALIA POST | 13-Nov-23 | 5.50 | A+ | 4.56 | -0.11 | -0.18 | 4.65 | 4.56 |
| WESTPAC | 21-Nov-23 | 5.25 | 4.58 | -0.11 | -0.18 | 4.68 | 4.58 | |
| FONTERRA | 26-Feb-24 | 5.50 | A- | 4.84 | -0.14 | -0.22 | 4.96 | 4.84 |
| NATIONAL AUST. BANK | 11-Mar-24 | 5.00 | 4.72 | -0.15 | -0.24 | 4.84 | 4.72 | |
| RABOBANK NEDERLANDS AUST | 11-Apr-24 | 5.50 | A+ | 4.81 | -0.15 | -0.27 | 4.93 | 4.81 |
| COMMONWEALTH BANK | 27-May-24 | 4.75 | 4.83 | -0.13 | -0.21 | 4.94 | 4.83 | |
| AURIZON NETWORK | 21-Jun-24 | 4.00 | BBB+ | 5.32 | -0.15 | -0.27 | 5.45 | 5.32 |
| MACQUARIE BANK | 7-Aug-24 | 1.75 | A+ | 4.96 | -0.16 | -0.26 | 5.11 | 4.95 |
| WELLS FARGO | 27-Aug-24 | 4.75 | BBB+ | 5.31 | -0.21 | -0.28 | 5.44 | 5.30 |
| WOOLWORTHS | 20-May-25 | 1.85 | BBB | 4.94 | -0.13 | -0.23 | 5.06 | 4.91 |
| UNIVERSITY OF SYDNEY | 28-Aug-25 | 3.75 | 4.85 | -0.11 | -0.16 | 4.97 | 4.82 | |
| NBN CO | 3-Dec-25 | 1.00 | 5.03 | -0.13 | -0.26 | 5.14 | 4.99 | |
| APPLE | 10-Jun-26 | 3.60 | AA+ | 4.71 | -0.08 | -0.22 | 4.81 | 4.65 |
| COMMONWEALTH BANK | 11-Jun-26 | 4.20 | AA- | 4.91 | -0.12 | -0.24 | 5.05 | 4.85 |
| ANZ BANK | 22-Jul-26 | 4.00 | AA- | 4.91 | -0.12 | -0.21 | 5.06 | 4.85 |
| NBN CO | 28-Sep-26 | 4.75 | 4.95 | -0.11 | -0.20 | 5.04 | 4.88 | |
| QANTAS | 12-Oct-26 | 4.75 | NR | 5.70 | -0.07 | -0.25 | 5.80 | 5.63 |
| AUST. PACIFIC AIRPORTS | 4-Nov-26 | 3.75 | BBB+ | 5.33 | -0.11 | -0.16 | 5.43 | 5.26 |
| WSO FINANCE | 1-Dec-26 | 4.00 | A+ | 4.90 | -0.07 | -0.09 | 4.99 | 4.83 |
| WSO FINANCE | 31-Mar-27 | 4.50 | 5.41 | -0.07 | -0.12 | 5.49 | 5.33 | |
| NBN CO | 14-Apr-27 | 4.20 | 4.95 | -0.11 | -0.23 | 5.04 | 4.88 | |
| TELSTRA | 19-Apr-27 | 4.00 | A- | 4.85 | -0.07 | -0.20 | 4.94 | 4.78 |
| PACIFIC NATIONAL FINANCE | 12-May-27 | 5.40 | BBB- | 7.15 | -0.09 | -0.07 | 7.24 | 7.07 |
| LENDLEASE | 27-Oct-27 | 3.40 | 6.66 | -0.06 | -0.03 | 6.73 | 6.57 | |
| FONTERRA | 2-Nov-27 | 4.00 | A- | 5.25 | -0.05 | -0.07 | 5.32 | 5.17 |
| WOOLWORTHS | 15-Nov-27 | 1.85 | BBB | 5.00 | -0.13 | -0.23 | 5.12 | 4.95 |
| AUSTRALIA POST | 8-Dec-27 | 4.99 | 5.14 | -0.06 | -0.07 | 5.20 | 5.05 | |
| MACQUARIE GROUP | 15-Dec-27 | 4.15 | BBB+ | 6.04 | -0.09 | -0.15 | 6.11 | 5.95 |
| NBN CO | 2-Jun-28 | 2.15 | 5.27 | -0.04 | -0.14 | 5.33 | 5.18 | |
| WESFARMERS | 23-Jun-28 | 1.94 | A- | 5.14 | -0.10 | -0.29 | 5.25 | 5.06 |
| AUSNET | 21-Aug-28 | 4.20 | BBB+ | 5.63 | -0.07 | -0.18 | 5.72 | 5.57 |
| QANTAS | 27-Sep-28 | 3.15 | 5.99 | -0.04 | -0.22 | 6.05 | 5.89 | |
| AIRSERVICES AUST | 15-Nov-28 | 5.40 | 4.74 | -0.04 | -0.05 | 4.79 | 4.64 | |
| AUSNET | 31-Jul-29 | 2.60 | BBB+ | 5.96 | -0.03 | -0.10 | 6.00 | 5.87 |
| QANTAS | 27-Nov-29 | 2.95 | 6.26 | -0.02 | -0.14 | 6.29 | 6.15 | |
| WOOLWORTHS | 20-May-30 | 2.80 | BBB | 5.65 | -0.05 | -0.13 | 5.71 | 5.55 |
| QANTAS | 9-Sep-30 | 5.25 | 6.24 | -0.01 | -0.14 | 6.27 | 6.12 | |
| NBN CO | 16-Dec-30 | 2.20 | 5.66 | 0.00 | -0.11 | 5.68 | 5.54 | |
| BRISBANE AIRPORT | 30-Dec-30 | 4.50 | BBB | 5.89 | -0.01 | -0.08 | 5.92 | 5.78 |
| LENDLEASE | 31-Mar-31 | 3.70 | 7.51 | 0.00 | 0.02 | 7.53 | 7.38 | |
| WESFARMERS | 23-Jun-31 | 2.55 | A- | 5.70 | -0.05 | -0.16 | 5.76 | 5.59 |
| WOOLWORTHS | 15-Nov-31 | 2.75 | BBB | 5.88 | -0.05 | -0.14 | 5.95 | 5.78 |