News
Asian Development Bank notes a rebalancing of demand for its latest Kauri gender bond, with solid local interest driving a successful placement despite reduced offshore demand. The supranational has already printed its largest annual volume in the Kauri market off the back of this second jumbo trade.
ASB Bank is the first New Zealand issuer to price an offshore tier-two deal under the Reserve Bank of New Zealand’s new bank-capital definitions. The US dollar transaction was popular with investors – about five times oversubscribed – and priced tighter than similar tier-two debt issued by Australia’s big-four banks.
Australian mortgage lenders say their books – and the securitisation and covered-bond structures they use to fund them – are of sufficient quality to withstand growing pressure on loan serviceability as rates continue to rise and cost of living challenges grow. Speakers at an Australian Securitisation Forum investor briefing in London noted solid prepayment and serviceability buffers while acknowledging that arrears will inevitably climb.
