News
Supranational, sovereign and agency Kangaroo issuance started the new year at record pace and by late February remained on course for the busiest start to the year for a decade. Market users say a raft of supporting factors has made deal flow possible for a notably wide range of issuers and share a cautiously optimistic outlook for the rest of 2022.
New Zealand sustainable finance took a step forward in volume and sector evolution over the course of 2021. At the KangaNews New Zealand Debt Capital Market Summit in December 2021, a panel of market participants updated on progress in the sector and its increasingly central role in the local capital market universe.
The KangaNews New Zealand Debt Capital Market Summit 2021 incorporated a detailed focus on the market and funding outlook for the local bank sector. At a centrepiece session on the agenda at the December 2021 event, treasurers from the local major banks gathered for a discussion on mortgage lending, funding conditions and how they plan to navigate a rising rate environment.
Genesis Energy focused on rapid execution in its latest use of proceeds green bond to negate elevated volatility. Retail demand held up as the institutional market became skittish, allowing Genesis to close the transaction with acceptable pricing and volume.
At the KangaNews New Zealand Debt Capital Market Summit in December 2021, Kate Thomson, managing director and analytical manager, structured finance ratings at S&P Global Ratings in Melbourne, provided an outlook on the impact of and exit from the COVID-19 pandemic on housing and consumer asset quality.
Speaking at the KangaNews New Zealand Debt Capital Market (NZDCM) Summit in December 2021, local investors updated delegates on the conclusions of a survey conducted by BNZ and KangaNews earlier in the year. Topics of relevance to the buy-side outlook include KiwiSaver, supply diversity, the investment environment and the rise of environmental, social and governance inputs.
Asian investors appear to be increasing their allocation to Australian dollar fixed income in 2022 at the same time as Australian financial institutions return to normal funding programmes. Investors and bank officials say Australian dollar credit is still an attractive, stable option despite increasing volatility and the prospect of interest rate increases.
Resimac pivoted to an Australian dollar-only structure for its first securitisation of the year. Deal sources say the domestic market retains capacity to support structured finance – at the right price – despite an increasingly turbulent macro backdrop.