News
The Australian dollar credit market displayed new-found resilience as ING Bank Australia and Macquarie Bank returned to primary issuance on 13 August after a volatile start to the month brought activity to a temporary halt. The issuers’ confidence to print ahead of a major-bank deal – and their pricing outcomes – demonstrate positive fundamental and technical conditions, deal sources say.
In June, KangaNews and Westpac gathered issuers from across the New Zealand high-grade landscape in Wellington to discuss domestic market conditions and global demand. While near-term attention remains focused on monetary policy, there is an underlying sense that supply patterns are fundamentally changing the shape of the New Zealand dollar market.
In July, KangaNews and Westpac Institutional Bank gathered Australia’s biggest sovereign and semi-government issuers to discuss their funding needs and strategies. Semi-government spreads have risen and funding tasks remain high, but issuers have plenty of options.
Rates investors are keen to pick up Australian high-grade paper at a time when elevated borrowing in the semi-government sector and the prospect of higher rates have pushed spreads out to attractive levels. In some cases, investors are rotating out of similarly rated credits and into higher yielding Australian semi-government names.
