News

The Asian bid has been a major talking point in the Australian credit market in early 2024 and, while technical factors have provided a strong tailwind, market participants believe the outlook is positive for the medium term at least. Finding ongoing sources of bank and corporate supply may be a bigger concern.

Australian deal flow slowed ahead of the holiday weekend, the highlight among deal pricing being Nestlé Capital Corporation's debut Kangaroo. A clutch of securitisation deals either priced or commenced flight path for post-Easter issuance while, in New Zealand, Rabobank New Zealand Branch printed a dual-tranche senior bond and Christchurch International Airport readied a domestic retail deal.

The emergence of private credit as an asset class in Australia began in the ultra-low rates environment ahead of and during the pandemic, but has only grown as overall interest in fixed income has grown in more recent times. The domestic market is still maturing and the focus of global interest is typically the US, but there are also private credit opportunities in Europe.