Summary: Corporate bond spreads about 12bps narrower on average; swap spreads wider; iTraxx down 14.20 points.
Corporate spreads finished the week about 12bps narrower on average as corporate yields generally outpaced the falls of their Commonwealth counterparts. The majority of spreads’ week-on-week changes at the individual level were within a range of -12bps to +5bps, with the spread of Mirvac’s September 2023s (spread: 129bps, -18bps) the most notable exception.
One of the two other main measures of corporate risk, swap-to-bond spreads, widened along its curve. The other measure, credit default swap premiums, decreased again. The Australian credit default swap index, the iTraxx Australia Series 37, finished 14.20 points lower at 110.80 points.
In ratings news, S&P revised the outlooks of Australia Pacific Airports Corporation, Brisbane Airport Corporation, Adelaide Airport and Southern Cross Airports Corporation from “negative” to “stable”.
Interested readers can find the week’s bond transactions in our tables via the link below.
| ISSUER | MATURITY | COUPON (%) | RATING | WEEK HIGH | WEEK LOW | CLOSING YIELD | Δ WEEK | Δ MONTH |
|---|---|---|---|---|---|---|---|---|
| GE Capital | 8-Aug-22 | 5.50 | BBB+ | 2.19 | 2.10 | 2.19 | 0.04 | |
| Optus | 23-Aug-22 | 3.25 | A | 2.16 | 2.10 | 2.16 | 0.01 | 0.17 |
| Apple Inc | 28-Aug-22 | 3.70 | AA+ | 2.11 | 2.02 | 2.11 | 0.07 | 0.25 |
| Wells Fargo | 7-Sep-22 | 5.25 | A- | 2.41 | 2.35 | 2.40 | -0.01 | 0.15 |
| Melbourne Airport | 15-Sep-22 | 4.00 | BBB+ | 2.53 | 2.45 | 2.45 | -0.08 | -0.14 |
| Telstra | 16-Sep-22 | 4.00 | A | 2.58 | 2.43 | 2.43 | -0.15 | 0.02 |
| Stockland | 23-Nov-22 | 4.50 | A- | 2.25 | 2.04 | 2.06 | -0.19 | -0.36 |
| ANZ | 16-Aug-23 | 5.00 | AA- | 3.83 | 3.39 | 3.39 | -0.44 | -0.29 |
| Transpower NZ | 28-Aug-23 | 5.75 | AA- | 3.80 | 3.32 | 3.32 | -0.48 | -0.70 |
| Mirvac Finance | 18-Sep-23 | 3.50 | BBB+ | 4.07 | 3.59 | 3.59 | -0.48 | -0.75 |
| Qantas | 10-Oct-23 | 4.40 | BB+ | 4.71 | 4.27 | 4.27 | -0.44 | -0.40 |
| Australia Post | 13-Nov-23 | 5.50 | A+ | 3.85 | 3.50 | 3.50 | -0.36 | -0.24 |
| Westpac | 21-Nov-23 | 4.40 | AA- | 3.93 | 3.49 | 3.49 | -0.44 | -0.33 |
| Fonterra | 26-Feb-24 | 5.50 | A- | 4.22 | 3.75 | 3.75 | -0.46 | -0.44 |
| NAB | 11-Mar-24 | 5.00 | AA- | 3.99 | 3.52 | 3.52 | -0.47 | -0.42 |
| Rabobank Nederland (Aust) | 11-Apr-24 | 5.50 | A+ | 4.13 | 3.63 | 3.63 | -0.50 | -0.53 |
| CBA | 27-May-24 | 4.75 | AA- | 4.06 | 3.64 | 3.64 | -0.42 | -0.44 |
| AusNet | 21-Jun-24 | 4.00 | BBB+ | 4.68 | 4.18 | 4.18 | -0.50 | -0.57 |
| Macquarie Bank | 7-Aug-24 | 1.75 | A+ | 4.38 | 3.89 | 3.89 | -0.49 | -0.55 |
| Wells Fargo | 27-Aug-24 | 4.75 | A+ | 4.63 | 4.12 | 4.12 | -0.52 | -0.56 |
| University of Sydney | 28-Aug-25 | 3.75 | Aa1 | 4.11 | 3.61 | 3.61 | -0.50 | -0.64 |
| Apple Inc | 10-Jun-26 | 3.60 | AA+ | 4.30 | 3.80 | 3.80 | -0.51 | -0.72 |
| CBA | 11-Jun-26 | 4.20 | AA- | 4.33 | 3.82 | 3.82 | -0.51 | -0.77 |
| ANZ | 22-Jul-26 | 4.00 | AA- | 4.37 | 3.85 | 3.85 | -0.52 | -0.78 |
| Qantas | 12-Oct-26 | 4.75 | BB+ | 5.53 | 5.02 | 5.02 | -0.51 | -0.72 |
| Australia Pacific Airports | 4-Nov-26 | 3.75 | BBB+ | 5.08 | 4.55 | 4.55 | -0.53 | -0.62 |
| CBA | 17-Nov-26 | 3.25 | AA- | 4.33 | 3.82 | 3.82 | -0.51 | |
| Australia Post | 1-Dec-26 | 4.00 | A+ | 4.33 | 3.84 | 3.84 | -0.49 | -0.68 |
| WSO Finance | 31-Mar-27 | 4.50 | A- | 4.93 | 4.42 | 4.42 | -0.51 | -0.67 |
| Telstra | 19-Apr-27 | 4.00 | A | 4.68 | 4.17 | 4.17 | -0.51 | -0.68 |
| Vicinity Centre | 26-Apr-27 | 4.00 | A | 5.12 | 4.60 | 4.60 | -0.52 | |
| Dexus Finance | 11-May-27 | 4.25 | A3 | 4.92 | 4.34 | 4.34 | -0.58 | |
| Asciano | 12-May-27 | 5.40 | BBB- | 6.06 | 5.52 | 5.52 | -0.55 | -0.63 |
| Fonterra | 2-Nov-27 | 4.00 | A- | 4.77 | 4.27 | 4.27 | -0.50 | -0.74 |
| Macquarie | 15-Dec-27 | 4.15 | BBB+ | 5.47 | 4.99 | 4.99 | -0.48 | -0.69 |
| AusNet | 21-Aug-28 | 4.20 | A- | 5.64 | 5.10 | 5.10 | -0.54 | -0.65 |