News
Nonmortgage securitisation for 2020 got under way in January with auto asset-backed securities (ABS) deals from Pepper Group (Pepper) and Liberty Financial (Liberty). Ongoing investor appetite for diversifying collateral in the sector buoyed demand, deal sources say.
On 6 February, Macquarie Bank (A+/A2/A) launched a benchmark, senior-unsecured, domestic deal comprising five-year tranches in either or both fixed- and floating-rate format and a one-year floating rate note (FRN). Indicative price guidance for the five-year tranches is 88 basis points area over swap benchmarks, while the one-year FRN is being marketed at 42 basis points area over three-month bank bills.
On 6 February, Latitude Financial Services (Latitude) began taking indications of interest for its personal loans asset-backed securities (ABS) deal, Latitude Australia Personal Loans Series 2020-1 Trust. Indicative total volume for the deal, which is expected to launch in the week beginning 10 February, is A$500 million (US$337.3 million). Westpac Institutional Bank is arranger and joint lead manager alongside Commonwealth Bank of Australia and National Australia Bank.
On 5 February, Resimac revealed plans for a potential prime residential mortgage-backed securities (RMBS) deal, including Australian dollar and US dollar tranches, from its Premier programme. Deutsche Bank, J.P. Morgan, MUFG Securities and National Australia Bank have been mandated to engage investors.
On 5 February, Macquarie Bank (A+/A2/A) began taking indications of interest for a five-year, Australian dollar denominated benchmark transaction, offered in either or both fixed and floating-rate format. Initial price guidance for the deal is 90 basis points area over swap benchmarks.
On 5 February, Westpac New Zealand (AA-/A1/AA-) revealed plans for a new self-led New Zealand dollar transaction. The potential deal will come in either or both a three-year floating-rate note and a 5-7 year fixed rate note format.
On 3 February, Korea Resources Corporation (A/A1) revealed plans for a debut three- or five-year Kangaroo transaction. BNP Paribas, Citi and J.P. Morgan have been mandated to arrange a series of investor meetings and calls in Australia and Asia beginning 6 February.
The federal government is re-evaluating its plan to facilitate retail access to corporate issuers. However, industry sources doubt that even improvements to the simplified corporate bond regime will encourage supply.
On 3 February, South Australian Government Financing Authority (SAFA) revealed its intention to issue a new, May 2032 bond line via syndication. The deal will be for up to A$1 billion (US$668.8 million) and is expected to come in the week beginning 10 February. Bank of America Securities, Commonwealth Bank of Australia, National Australia Bank and UBS are joint lead managers.
Australian market deal activity slowed to a trickle in the public-holiday interrupted final week of January with only Liberty Financial issuing an A$300 million (US$201.5 million) auto asset-backed securities transaction and BNG Bank increasing its April 2029 line by A$25 million.
On 31 January, Latitude Financial Services (Latitude) mandated Commonwealth Bank of Australia, National Australia Bank and Westpac Institutional Bank to engage investors regarding an Australian dollar denominated asset-backed securities (ABS) deal from its personal loans programme.