News
Victoria’s latest state budget outlined a significant improvement in forecast state finances following the troubled environment of the pandemic. The state’s Melbourne-based treasurer, Tim Pallas, shares his view on the outlook.
New Zealand is once again among the world leaders in the economic cycle, as its central bank battles with sky-high inflation through successive rate increases. The response was a key talking point at the ANZ-KangaNews New Zealand Capital Market Forum, which took place in Auckland in late May.
Dealers across Australian dollar fixed-income markets neared or reached holding limits in Q2, further drying up liquidity that has been shallow all year. While trading volume is nearing financial crisis lows, market participants say clarity on rates and inflation could see a swift rebound – particularly in investment-grade credit – as investors hunt for bargains.
The KangaNews Debt Capital Market Summit returned to Sydney as an in-person conference in May. Discussions covered a range of topics including rising inflation, central bank policy and trading in a highly volatile market. The increasing interest in environmental, social and governance issues was another talking point.
Transpower’s decision to seek – and receive – Climate Bonds Initiative certification of its green financing framework and enter the green-bond market marks a major step forward for sustainable finance in New Zealand. Sustainable finance is now progressing along the transmission and distribution networks, and Transpower’s move should pave the way for others to follow.
Transition to a more sustainable economy is increasingly driving investment and business decisions. While climate has been a key focus, market participants are now moving to add natural capital to their calculations and pressing ahead with more socially focused projects, according to speakers at the KangaNews Sustainable Debt Summit, which took place in Sydney in late May.
New Zealand has become a test bed for monetary policy as the country became the first in the developed world to raise rates during the latest round of tightening. Participants at the third annual KangaNews-Westpac New Zealand high-grade roundtable discussed the context of local monetary policy and the funding outlook for local government sector issuers.
Mutual banks are confronting the same challenges as the rest of Australia’s lenders: higher rates leading to borrower stress, accompanied by funding volatility. Speakers at the KangaNews Mutual Sector Wholesale Funding Seminar, which took place in Sydney in June, highlighted the sector’s advantages but acknowledged its headwinds.
The Kauri market’s resilient domestic bid and positive US dollar swap basis conditions supported World Bank’s latest New Zealand dollar Sustainable Development Bond deal. The same factors are making Kauri issuance possible at a time when Kangaroo supply has been severely limited.
John Deere Financial noted solid interest for its latest Kangaroo deal, recording a peak order book over A$700 million. The solid result was achieved despite soft offshore demand, according to deal sources.