Summary: Corporate bond spreads unchanged; swap spreads narrower; iTraxx up.
Corporate spreads finished the week unchanged on average as corporate bond yields kept pace with the rises of their Commonwealth Government counterparts. The majority of spreads’ week-on-week changes at the individual level were within a range of -6bps to +1bp and the exceptions were limited to short-dated lines.
One of the two other main measures of corporate risk, swap-to-bond spreads, narrowed again. However, the other main measure, credit default swap premiums, increased on average again. The Australian credit default swap index, the iTraxx Australia Series 39, finished 3.00 points higher at 87.00 points.
AUSTRALIAN CORPORATE BONDS
| ISSUER | MATURITY | COUPON (%) | RATING | CLOSING YIELD | Δ WEEK | Δ MONTH | WEEK HIGH | WEEK LOW |
|---|---|---|---|---|---|---|---|---|
| QANTAS | 10-Oct-23 | 4.40 | 4.92 | 0.14 | 0.03 | 4.92 | 4.78 | |
| AUSTRALIA POST | 13-Nov-23 | 5.50 | A+ | 4.38 | -0.02 | -0.03 | 4.39 | 4.38 |
| WESTPAC | 21-Nov-23 | 5.25 | 4.37 | -0.01 | -0.04 | 4.38 | 4.37 | |
| FONTERRA | 26-Feb-24 | 5.50 | A- | 4.70 | 0.00 | 0.06 | 4.71 | 4.69 |
| NATIONAL AUST. BANK | 11-Mar-24 | 5.00 | 4.58 | -0.01 | 0.02 | 4.59 | 4.58 | |
| RABOBANK NEDERLANDS AUST | 11-Apr-24 | 5.50 | A+ | 4.75 | 0.00 | 0.00 | 4.76 | 4.73 |
| COMMONWEALTH BANK | 27-May-24 | 4.75 | 4.67 | 0.00 | 0.05 | 4.68 | 4.65 | |
| AURIZON NETWORK | 21-Jun-24 | 4.00 | BBB+ | 5.22 | 0.00 | 0.09 | 5.23 | 5.20 |
| MACQUARIE BANK | 7-Aug-24 | 1.75 | A+ | 4.76 | 0.00 | -0.05 | 4.77 | 4.74 |
| WELLS FARGO | 27-Aug-24 | 4.75 | BBB+ | 5.26 | -0.04 | 0.04 | 5.32 | 5.26 |
| WOOLWORTHS | 20-May-25 | 1.85 | BBB | 4.92 | 0.01 | 0.14 | 4.94 | 4.89 |
| UNIVERSITY OF SYDNEY | 28-Aug-25 | 3.75 | 4.78 | 0.01 | 0.09 | 4.80 | 4.74 | |
| NBN CO | 3-Dec-25 | 1.00 | 5.11 | 0.04 | 0.20 | 5.16 | 5.04 | |
| APPLE | 10-Jun-26 | 3.60 | AA+ | 4.77 | 0.04 | 0.16 | 4.79 | 4.71 |
| COMMONWEALTH BANK | 11-Jun-26 | 4.20 | AA- | 5.02 | 0.06 | 0.19 | 5.04 | 4.94 |
| ANZ BANK | 22-Jul-26 | 4.00 | AA- | 5.02 | 0.05 | 0.20 | 5.04 | 4.95 |
| NBN CO | 28-Sep-26 | 4.75 | 5.11 | 0.06 | 0.22 | 5.13 | 5.03 | |
| QANTAS | 12-Oct-26 | 4.75 | NR | 5.73 | 0.05 | 0.17 | 5.75 | 5.66 |
| AUST. PACIFIC AIRPORTS | 4-Nov-26 | 3.75 | BBB+ | 5.31 | 0.05 | 0.19 | 5.33 | 5.24 |
| WSO FINANCE | 1-Dec-26 | 4.00 | A+ | 5.00 | 0.05 | 0.18 | 5.02 | 4.93 |
| WSO FINANCE | 31-Mar-27 | 4.50 | 5.44 | 0.05 | 0.14 | 5.45 | 5.37 | |
| NBN CO | 14-Apr-27 | 4.20 | 5.16 | 0.09 | 0.26 | 5.17 | 5.05 | |
| PACIFIC NATIONAL FINANCE | 12-May-27 | 5.40 | BBB- | 7.10 | 0.06 | 0.16 | 7.11 | 7.02 |
| LENDLEASE | 27-Oct-27 | 3.40 | 6.77 | 0.06 | 0.16 | 6.77 | 6.68 | |
| FONTERRA | 2-Nov-27 | 4.00 | A- | 5.30 | 0.06 | 0.15 | 5.31 | 5.22 |
| WOOLWORTHS | 15-Nov-27 | 1.85 | BBB | 4.99 | 0.06 | 0.20 | 5.00 | 4.91 |
| AUSTRALIA POST | 8-Dec-27 | 4.99 | 5.20 | 0.07 | 0.11 | 5.21 | 5.12 | |
| MACQUARIE GROUP | 15-Dec-27 | 4.15 | BBB+ | 6.03 | 0.07 | 0.12 | 6.04 | 5.95 |
| NBN CO | 2-Jun-28 | 2.15 | 5.40 | 0.09 | 0.29 | 5.42 | 5.29 | |
| WESFARMERS | 23-Jun-28 | 1.94 | A- | 5.30 | 0.08 | 0.22 | 5.30 | 5.20 |
| AUSNET | 21-Aug-28 | 4.20 | BBB+ | 5.75 | 0.08 | 0.15 | 5.75 | 5.65 |
| QANTAS | 27-Sep-28 | 3.15 | 6.04 | 0.08 | 0.21 | 6.04 | 5.94 | |
| AIRSERVICES AUST | 15-Nov-28 | 5.40 | 4.86 | 0.06 | 0.20 | 4.88 | 4.79 | |
| AUSNET | 31-Jul-29 | 2.60 | BBB+ | 6.17 | 0.10 | 0.22 | 6.17 | 6.05 |
| QANTAS | 27-Nov-29 | 2.95 | 6.42 | 0.11 | 0.23 | 6.42 | 6.30 | |
| WOOLWORTHS | 20-May-30 | 2.80 | BBB | 5.86 | 0.11 | 0.24 | 5.86 | 5.73 |
| QANTAS | 9-Sep-30 | 5.25 | 6.42 | 0.12 | 0.22 | 6.42 | 6.28 | |
| NBN CO | 16-Dec-30 | 2.20 | 5.90 | 0.12 | 0.27 | 5.91 | 5.77 | |
| BRISBANE AIRPORT | 30-Dec-30 | 4.50 | BBB | 6.05 | 0.12 | 0.18 | 6.05 | 5.91 |
| LENDLEASE | 31-Mar-31 | 3.70 | 7.74 | 0.13 | 0.11 | 7.74 | 7.58 | |
| WESFARMERS | 23-Jun-31 | 2.55 | A- | 5.93 | 0.13 | 0.21 | 5.93 | 5.79 |
| WOOLWORTHS | 15-Nov-31 | 2.75 | BBB | 6.13 | 0.13 | 0.23 | 6.13 | 5.98 |
| AUST. PACIFIC AIRPORTS (BRISBANE) | 25-Nov-31 | 3.76 | 6.23 | 0.19 | 0.29 | 6.23 | 6.02 |