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It was a slower week in the Australasian primary market, however, two residential mortgage-backed securities issuers were able to print upsized deals, while Challenger also tapped the market with a AS$400 million (US$273.4 million) subordinated transaction. Across the Tasman, Westpac New Zealand also executed NZ$600 million (US$363 million) in tier-two notes.

The New Zealand Financial Markets Association’s recently published debt capital market guidelines give participants a roadmap to greater clarity and best practice, particularly for new and infrequent issuers. The guidelines are part of the association’s push to develop New Zealand’s debt market, making it more inclusive.

New Zealand’s official cash rate will likely hit 4 per cent, but a range of domestic and global factors will dictate how long it stays elevated. The impact of a higher rate on the country’s economy, however, is unclear – particularly as interest rate risk remains to the upside, according to economists.