News
The Reserve Bank of Australia (RBA)’s decision to cut the cash rate on 4 June surprised no-one. Analysts are focusing on a perceived lack of dovish intent in the RBA statement, while an economic forum conducted immediately prior to the cut identified the local housing market – rather than global trade uncertainty – as the primary likely driver of future rates direction.
On 5 June, ANZ Banking Group (ANZ) began taking indications of interest for its self-led residential mortgage-backed securities (RMBS) deal, Kingfisher 2019-1. The forthcoming transaction has indicative total volume of A$750 million (US$524.3 million) and is expected to launch on 11 June.
On 5 June, PACCAR Financial (A+/S&P) launched a new, four-year, Australian dollar denominated senior-unsecured benchmark. The initial price guidance for the forthcoming transaction is 90-93 basis points area over semi-quarterly swap. Pricing is expected on the day of launch, according to joint lead managers ANZ and Westpac Institutional Bank.
Treasury Corporation of Victoria (TCV) added a new line to the long end of its curve on 3 June, with a A$267 million (US$186.4 million) November 2034 syndication led by Westpac Institutional Bank. The deal was driven by reverse-enquiry demand out of Asia.
South Australian Government Financing Authority (SAFA) (AA+/Aa1) launched a new, one-year, syndicated Australian Overnight Index Average (AONIA)-linked floating-rate note (FRN) deal, on 4 June. The forthcoming transaction has indicative price guidance of 38-43 basis points area over the daily compounded AONIA, and indicative volume of A$100 million (US$69.7 million). Pricing is expected on 6 June, according to sole lead manager UBS.
On 4 June, Macquarie Bank revealed plans to meet investors for a self-led refinance of the Class A notes from its Puma Series 2014-2 (Puma 2014-2) residential mortgage-backed securities (RMBS) issue.
On 4 June, Industrial and Commercial Bank of China New Zealand (ICBC NZ) (A/A1) mandated ANZ, BNZ and Westpac Banking Corporation New Zealand Branch to arrange an investor conference call on 13 June, regarding a New Zealand dollar denominated transaction.
On 3 June, China Construction Bank Sydney Branch (CCB Sydney) (A1) and CCB Tokyo Branch revealed plans to hold fixed-income investor meetings and calls, regarding proposed benchmark transactions denominated in Australian dollars and Japanese Yen.
Treasury Corporation of Victoria (TCV) (AAA/Aaa) launched a new, minimum A$250 million (US$173.8 million) long 15-year syndicated bond deal, on 3 June. The forthcoming transaction is being marketed at 83.5 basis points area over the 10-year futures contract, equivalent to 57.5 basis points area over Australian Commonwealth government bond.