News

World Bank’s return to the Kauri market was the largest volume print in the sector since the Reserve Bank of New Zealand released the second consultation paper for its liquidity policy review in February – a development that has cast doubt over the Kauri market’s future prospects. Distribution statistics show bank books supporting the World Bank deal but accompanied by a greater than usual participation from other investors.

Supranational, sovereign and agency issuers were to the fore in the Australasian primary market in the week ending 16 June, the most notable transaction being World Bank's NZ$950 million return to the Kauri market. Meanwhile, securitisation flow was highlighted by HSBC Bank Australia’s Lion 2023-1 capital-relief residential mortgage-backed securities deal.  

New South Wales Treasury Corporation navigated event risk and competing supply to print its latest dual-tranche deal. The transaction included the issuer’s longest-dated floating rate note tranche, which it highlights as a supportive factor for robust investor demand.

South Australian Government Financing Authority (SAFA) has announced plans to issue around A$5.4 billion (US$3.7 billion) cash value of long-term funding in the 2023/24 financial year, following the announcement of South Australia’s state budget on 15 June. The forecast includes A$300 million of pre-funding, conducted in the 2022/23 year to date.