News

With the second New Zealand-origin covered bond to print in the euro market in less than three weeks, ANZ New Zealand further demonstrated investor appetite for the asset class amid what deal sources say was an improving market tone. ANZ New Zealand achieved notable price tightening, supported by capped deal size and a significantly oversubscribed book.

A change in deal structure gave RedZed an improved cost of funds from its most recent residential mortgage-backed securities transaction compared with its previous public deal, despite identical margins on the class A1 notes. Issuer and arranger say securitisation demand remains constructive and hope for further margin compression in future supply.