News
Provisional ratings were assigned to a new asset-backed securities (ABS) issue by New Zealand's Motor Trade Finances (MTF) on July 7. The forthcoming transaction, MTF Valiant Trust 2014, has an indicative volume of NZ$150 million (US$130.7 million) across seven tranches and is backed by New Zealand auto loan receivables, according to a ratings report by Fitch Ratings (Fitch).
Macquarie Bank priced its second all-Australian dollar residential mortgage-backed securities (RMBS) issue of 2014 on July 3.
Australian and New Zealand deal flow continued with a smattering of activity towards the end of the week with four new deals and one increase. The New Zealand Debt Management Office priced a new 2027 line – its fourth ever by syndication – and updated KangaNews on its funding strategy.
Issuance data for the first half of 2014 paint an unspectacular picture of most Australasian markets so far this year. Volume in most sectors has been solid in comparison with the same point a year ago but, of the markets KangaNews tracks, only Kauri deal flow was on pace for an annual record by the end of June.
On July 3, African Development Bank (AfDB) (AAA/Aaa) priced a new January 2025 Kangaroo line in what will be the borrower's seventh Australian dollar deal for 2014. According to KangaNews data, the borrower most recently visited the market in May with a new A$75 million (US$70.9 million) 12-year line with pricing of 58.75 basis points over Australian government bond.
Bank of Communications Sydney Branch (BoCom Sydney) (A-/A2/A) priced an inaugural three-year floating-rate Australian dollar deal on July 2.
Despite significant demand for its latest syndicated deal, the New Zealand Debt Management Office (NZDMO) confirms it has no plans to update its tender schedule. The NZDMO priced the syndicated offer of a new 2027 maturity benchmark bond line on July 2, reaching its previously announced maximum volume of NZ$2 billion (US$1.8 billion).
On July 2, Rentenbank (AAA/Aaa/AAA) priced a new 10.5-year Kangaroo line. According to KangaNews data, the deal is the 12th time the borrower has visited the Kangaroo market in 2014. Rentenbank most recently visited the Australian dollar market on June 5 with a A$150 million tap to its April 2024 line which had pricing of 57.75 basis points over Australian government bond.
The New Zealand Debt Management Office (NZDMO) priced the syndicated offer of a new 2027 maturity benchmark bond line on July 2.
Following yet another uneventful Reserve Bank of Australia (RBA) rates decision on July 2, analysts have been left searching for crumbs in a reserve bank statement which is universally interpreted as nearly identical in tone to its June equivalent. The strong Australian dollar features in many analysts' post-decision reports, but the consensus expectation is that the period of rates stability in Australia is likely to be protracted.