News
The following interview is with an Australian-based service provider to the debt capital markets. It was conducted on 30 March 2020.
The following interview is with an Australian-based debt capital markets originator. It was conducted on 2 April 2020.
On 8 April, Bank of Montreal (BMO) launched a new three-year, Australian dollar denominated, floating-rate note, covered bond. Indicative price guidance for the forthcoming deal, which is expected to price on the day of launch, is 125 basis points area over three-month bank bills. BMO Capital Markets, Commonwealth Bank of Australia, National Australia Bank, UBS and Westpac Institutional Bank are leading.
Fitch Ratings (Fitch) downgraded the long-term issuer default ratings of the Australian major banks and their New Zealand subsidiaries on 7 April, to A+ from AA-, and kept all four on negative outlook. The decision reflects the expected effect on core markets and bank operations of measures being implemented by governments to limit the spread of COVID-19.
On 7 April, Australian Capital Territory (ACT) (AAA by S&P) launched an Australian dollar denominated, syndicated, dual-tranche transaction. The offer is a new three-year bullet benchmark alongside a tap of the May 2029 maturity. Indicative price guidance for the forthcoming deal is, respectively, 56-60 basis points area over futures and 80-84 basis points area over futures.
The Reserve Bank of New Zealand (RBNZ) now says it will expand its large-scale asset purchase (LSAP) programme to include NZ$3 billion (US$1.8 billion) of New Zealand Local Government Funding Agency (LGFA) debt. The 7 March announcement comes just a day after the reserve bank said it would make “small scale” purchases of LGFA bonds alongside rather than as part of the LSAP.
The following interview is with a UK-based fixed-income investor. It was conducted on 25 March 2020.
The following interview is with an Asian-based syndicate banker covering Australian dollars. It was conducted on 25 March 2020.