Summary: Corporate bond spreads 6bps wider on average; swap spreads widen; iTraxx increases.
Corporate spreads finished the week about 6bps wider on average as corporate bond yields outpaced the rises of their Commonwealth counterparts. The majority of spreads’ week-on-week changes at the individual level were within a range of -7bps to 8bps and there were no especially notable exceptions.
One of the two other main measures of corporate risk, swap-to-bond spreads, widened again. The other main measure, credit default swap premiums, increased on average. The Australian credit default swap index, the iTraxx Australia Series 38, finished 5.00 higher at 83.50 points.
AUSTRALIAN CORPORATE BONDS
| ISSUER | MATURITY | COUPON (%) | RATING | CLOSING YIELD | Δ WEEK | Δ MONTH | WEEK HIGH | WEEK LOW |
|---|---|---|---|---|---|---|---|---|
| ANZ BANK | 16-Aug-23 | 5 | AA- | 4.39 | -0.10 | 0.01 | 4.45 | 4.37 |
| SUNCORP-METWAY | 13-Sep-23 | 3 | 4.53 | -0.10 | 0.05 | 4.58 | 4.48 | |
| QANTAS | 10-Oct-23 | 4.4 | 5.24 | -0.11 | 0.09 | 5.30 | 5.21 | |
| AUSTRALIA POST | 13-Nov-23 | 5.5 | A+ | 4.66 | -0.06 | 0.13 | 4.67 | 4.61 |
| WESTPAC | 21-Nov-23 | 5.25 | 4.66 | -0.06 | 0.15 | 4.66 | 4.60 | |
| FONTERRA | 26-Feb-24 | 5.5 | A- | 5.06 | 0.01 | 0.40 | 5.06 | 4.94 |
| NATIONAL AUST. BANK | 11-Mar-24 | 5 | 4.95 | 0.03 | 0.35 | 4.95 | 4.83 | |
| RABOBANK NEDERLANDS AUST | 11-Apr-24 | 5.5 | A+ | 5.10 | 0.05 | 0.35 | 5.10 | 4.96 |
| COMMONWEALTH BANK | 27-May-24 | 4.75 | 5.09 | 0.07 | 0.43 | 5.09 | 4.93 | |
| AURIZON NETWORK | 21-Jun-24 | 4 | BBB+ | 5.65 | 0.08 | 0.50 | 5.65 | 5.48 |
| MACQUARIE BANK | 7-Aug-24 | 1.75 | A+ | 5.32 | 0.11 | 0.53 | 5.32 | 5.14 |
| WELLS FARGO | 27-Aug-24 | 4.75 | BBB+ | 5.70 | 0.11 | 0.51 | 5.70 | 5.51 |
| WOOLWORTHS | 20-May-25 | 1.85 | BBB | 5.35 | 0.18 | 0.74 | 5.35 | 5.11 |
| UNIVERSITY OF SYDNEY | 28-Aug-25 | 3.75 | 5.21 | 0.22 | 0.73 | 5.21 | 4.94 | |
| NBN CO | 3-Dec-25 | 1 | 5.43 | 0.21 | 0.74 | 5.43 | 5.15 | |
| APPLE | 10-Jun-26 | 3.6 | AA+ | 5.13 | 0.21 | 0.76 | 5.13 | 4.86 |
| COMMONWEALTH BANK | 11-Jun-26 | 4.2 | AA- | 5.38 | 0.27 | 0.77 | 5.38 | 5.06 |
| ANZ BANK | 22-Jul-26 | 4 | AA- | 5.38 | 0.27 | 0.78 | 5.38 | 5.05 |
| NBN CO | 28-Sep-26 | 4.75 | 5.36 | 0.26 | 0.67 | 5.36 | 5.05 | |
| QANTAS | 12-Oct-26 | 4.75 | NR | 6.08 | 0.14 | 0.60 | 6.08 | 5.79 |
| AUST. PACIFIC AIRPORTS | 4-Nov-26 | 3.75 | BBB+ | 5.78 | 0.29 | 0.78 | 5.78 | 5.43 |
| WSO FINANCE | 1-Dec-26 | 4 | A+ | 5.27 | 0.29 | 0.74 | 5.27 | 4.93 |
| WSO FINANCE | 31-Mar-27 | 4.5 | 5.78 | 0.30 | 0.77 | 5.78 | 5.43 | |
| NBN CO | 14-Apr-27 | 4.2 | 5.37 | 0.23 | 0.62 | 5.37 | 5.08 | |
| TELSTRA | 19-Apr-27 | 4 | A- | 5.26 | 0.24 | 0.65 | 5.26 | 4.96 |
| PACIFIC NATIONAL FINANCE | 12-May-27 | 5.4 | BBB- | 7.59 | 0.28 | 0.87 | 7.59 | 7.26 |
| LENDLEASE | 27-Oct-27 | 3.4 | 7.03 | 0.32 | 0.84 | 7.03 | 6.66 | |
| FONTERRA | 2-Nov-27 | 4 | A- | 5.61 | 0.30 | 0.78 | 5.61 | 5.25 |
| WOOLWORTHS | 15-Nov-27 | 1.85 | BBB | 5.53 | 0.27 | 0.76 | 5.53 | 5.20 |
| AUSTRALIA POST | 8-Dec-27 | 4.99 | 5.50 | 0.30 | 0.73 | 5.50 | 5.14 | |
| MACQUARIE GROUP | 15-Dec-27 | 4.15 | BBB+ | 6.49 | 0.31 | 0.71 | 6.49 | 6.12 |
| NBN CO | 2-Jun-28 | 2.15 | 5.63 | 0.24 | 0.55 | 5.63 | 5.32 | |
| WESFARMERS | 23-Jun-28 | 1.94 | A- | 5.63 | 0.24 | 0.64 | 5.63 | 5.32 |
| AUSNET | 21-Aug-28 | 4.2 | BBB+ | 6.06 | 0.28 | 0.58 | 6.06 | 5.72 |
| QANTAS | 27-Sep-28 | 3.15 | 6.35 | 0.17 | 0.53 | 6.35 | 6.02 | |
| AIRSERVICES AUST | 15-Nov-28 | 5.4 | 5.08 | 0.30 | 0.61 | 5.08 | 4.72 | |
| AUSNET | 31-Jul-29 | 2.6 | BBB+ | 6.37 | 0.32 | 0.65 | 6.37 | 5.98 |
| QANTAS | 27-Nov-29 | 2.95 | 6.59 | 0.23 | 0.48 | 6.59 | 6.26 | |
| WOOLWORTHS | 20-May-30 | 2.8 | BBB | 6.08 | 0.29 | 0.69 | 6.08 | 5.73 |
| QANTAS | 9-Sep-30 | 5.25 | 6.56 | 0.24 | 0.36 | 6.56 | 6.23 | |
| NBN CO | 16-Dec-30 | 2.2 | 5.93 | 0.16 | 0.43 | 5.93 | 5.71 | |
| BRISBANE AIRPORT | 30-Dec-30 | 4.5 | BBB | 6.29 | 0.25 | 0.58 | 6.29 | 5.96 |
| LENDLEASE | 31-Mar-31 | 3.7 | 7.82 | 0.33 | 0.63 | 7.82 | 7.43 | |
| WESFARMERS | 23-Jun-31 | 2.55 | A- | 6.11 | 0.31 | 0.55 | 6.11 | 5.74 |
| WOOLWORTHS | 15-Nov-31 | 2.75 | BBB | 6.27 | 0.24 | 0.58 | 6.27 | 5.95 |