News
J.P. Morgan has priced a new five-year Kangaroo line on October 26 in a year of subdued issuance by financial institutions into the market.
The New Zealand Debt Management Office (NZDMO) says it was pleasantly surprised by the demand its return to inflation-linked issuance received, which included substantial European participation. The transaction's lead managers reveal that the NZ$2.5 billion (US$2.1 billion), 2025 issue attracted a final order book of around NZ$4.3 billion.
The Australian fixed income market is stuck in a "low equilibrium" with "markedly" low allocation from the superannuation industry, according to a report commissioned by the Australian Securitisation Forum (ASF). The report says the situation requires policy intervention to increase supply and demand in the domestic corporate bond market.
Bendigo and Adelaide Bank (BEN) (A-/A2/A-) has launched a new three-year domestic senior unsecured line – the bank's first public wholesale issue since Bendigo Bank and Adelaide Bank merged in November 2007.
In its third transaction in the AUD market this month, the Inter-American Development Bank (IADB) (AAA/Aaa) priced a new three-year Kangaroo deal on October 24. The supranational issued into the Kangaroo market with a A$150 million (US$155 million) 2021 tap at 73 basis points over the May 21 ACGB on October 10, and a 2022 increase of A$175 million at 80 basis points over the July 2022 ACGB on October 19.
The New Zealand Debt Management Office (NZDMO) (AA+/Aaa/AA+) has priced NZ$2.5 billion (US$2.03 billion) new 2 per cent inflation-linked bonds maturing in September 20 2025 on October 24. The notes were issued at a spread of 163 basis points under the NZGB 5.5 per cent 2023 benchmark bonds to yield 1.96 per cent.
The Australian Office of Financial Management (AOFM) says the significant reshaping of its issuance strategy for the 2012/13 financial year it announced on October 23 is part of an ongoing strategy of extending the tenor of its funding profile. According to the AOFM announcement, Treasury bond issuance in 2012/13 will grow by A$10 billion (US$10.3 billion), offsetting an expected reduction in Treasury note issuance.
Securitisation investors from Japan and the UK see favourable spreads and simple structures bringing the Australian market into the limelight, but ask for increased communication. At a panel during the Australian Securitisation Forum 2012 conference in Sydney, investors said they have not seen the spread tightening in Australia that has been evident in European markets as central banks attempt to expand the availability of credit by lowering interest rates.
The Australian government announced its mid-year economic and fiscal outlook (MYEFO) for financial year 2012/13 on October 22. The update was perceived by economists as a reminder that the burden for managing an adverse growth outlook will continue to fall to the Reserve Bank of Australia (RBA).
The Australian Prudential Regulation Authority (APRA) has outlined the conceptual context of its forthcoming new permanent regime covering securitisation in Australia. The new regime – on which APRA expects to initiate consultation early in 2013 with implementation to follow the next year – will be based on the regulator's desire to simplify securitisation rules, to facilitate funding-only issuance, and to address lessons learned about the market.
The Reserve Bank of Australia has announced plans to make standardised reporting of residential mortgage-backed securities (RMBS) a condition of the securities' repo eligibility. The bank says it hopes making more comprehensive and up-to-date information publicly available will promote transparency in the wider RMBS market as well as helping the RBA itself more precisely value securities held on its balance sheet.
Preliminary ratings have been assigned to a new non-conforming and prime residential mortgage-backed security (RMBS) to be issued by Resimac. The deal, RESIMAC Bastille Trust Series 2012-1NC, comprises A$250 million (US$ 258 million) in eight classes of floating rate notes.