News
On 11 June, ANZ Banking Group (ANZ) launched its self-led residential mortgage-backed securities (RMBS) deal, Kingfisher Trust 2019-1. The forthcoming transaction has minimum total volume of A$750 million (US$521.7 million). Pricing is expected on or before 14 June.
On 11 June, National Australia Bank (NAB) (AA-/Aa3) revealed plans for a self-led, five-year, benchmark senior-unsecured Australian dollar denominated transaction, in either or both fixed- and floating-rate formats.
Rentenbank (AAA/Aaa/AAA) launched a minimum A$100 million (US$69.6 million) increase of its April 2024 Kangaroo bond, on 11 June. The forthcoming transaction has indicative price guidance of 38 basis points area over semi-quarterly swap, equivalent to 45.4 basis points area over Australian Commonwealth government bond. Mizuho Securities and RBC Capital Markets are joint lead managers for the deal.
On 11 June, expected ratings were assigned by Moody's Investors Service to Metro Finance's auto and equipment asset-backed securities (ABS) deal, Metro Finance 2019-1 Trust. The deal has indicative total volume of A$300 million (US$208.8 million).
The first full week of June saw South Australian Government Financing Authority bring a debut Australian overnight index average-linked deal to the Australian market. Securitisation deal flow also kept up pace, with AMP Bank and Bendigo and Adelaide Bank each pricing A$1 billion (US$697 million) residential mortgage-backed securities deals.
Australia’s residential mortgage-backed securities (RMBS) market underwent a May and June renaissance with A$7.6 billion (US$5.3 billion) of primary supply priced. With more deals in the pipeline, intermediaries say liquidity dynamics continue to support the influx of deals. Meanwhile, a sentiment shift on the housing market is set to provide ancillary support.
Ongoing institutional support for unrated NEXTDC has allowed the returning issuer further to bolster its capital-requirement capabilities for the future. Capacity issues are not yet a valid concern, however the issuer is making plans for when unrated supply may eventually outpace demand in the local market.