News
The Australian Prudential Regulation Authority’s decision to reduce the size of the committed liquidity facility to zero by the end of next year may not be entirely surprising but it has ramifications across the local fixed-income market. The most obvious are on the demand side, but a closer examination of the decision’s implications also reveals likely consequences for supply dynamics.
The private-debt asset class is growing as investors seek reliable return in the ultra-low rates and spread environment. As private debt becomes increasingly mainstream, Commonwealth Bank of Australia and KangaNews explore how investors integrate environmental, social and governance practices in their strategies.
Despite lockdowns and COVID-19, corporate Australasia is optimistic, according to the 2021 KangaNews-Moody’s Investors Service Corporate Borrowers’ Intentions Survey. The results highlight favourable market conditions are expected for future funding plans.
Last year, KangaNews conducted a focused research project to gauge exactly what Australian and New Zealand fixed-income investors want from issuers when it comes to environmental, social and governance credentials. The second iteration of this focused survey, conducted in September 2021, finds investor attention is still centred on issuer-level analysis – though evolution of labelled securities is also catching attention.
One of the most significant aims of sustainable finance is developing climate-reporting standards that are as quantitative and robust as financial reporting. New Zealand is taking a global lead on mandatory climate reporting but there is much work to be done to reach the end goal.
For the second year running, ANZ and KangaNews hosted a roundtable discussion – this time in late September – to discuss conditions in the Australian secondary market and what trading realities say about macro trends.
HESTA was the first Australian superannuation fund to commit to a 2050 net-zero target and has also put in place a climate-change transition plan to obtain a 33 per cent reduction in portfolio carbon emissions by 2030. Mary Delahunty, head of impact at HESTA in Melbourne, talks to KangaNews about the fund’s sustainability strategy.
Bolstered by a – for a time – record iron-ore price and a largely COVID-19-free existence, Western Australia has enjoyed a unique economic rebound in 2021. The state’s premier and treasurer, Mark McGowan, explains why the state government is keeping cautious budget and public-health policy settings in place.