News
The latest asset-backed securities (ABS) transaction to price in Australia demonstrates the extent to which this asset class is competing favourably with recent residential mortgage-backed securities (RMBS) issuance in terms of size and price. Robust demand may also have been fuelled by scarcity value given a hiatus between transactions.
On April 20, Firstmac mandated a series of domestic residential mortgage-backed securities (RMBS) investor meetings, which are scheduled to take place on April 28 and 29. Joint lead managers ANZ, National Australia Bank and Westpac Institutional Bank, say an Australian dollar RMBS transaction may follow.
On April 19, Western Australian Treasury Corporation (WATC) (AA+/Aa2) priced its second benchmark transaction of 2016. According to KangaNews data, WATC was most recently in the domestic market in March of this year when it priced A$750 million (US$575.5 million) of five-year paper at 30 basis points over bank bills.
On April 19, Rentenbank (AAA/Aaa/AAA) priced a new, five-year Kauri bond. According to KangaNews data, Rentenbank was most recently in the Kauri market in April last year, increasing its April 2024 maturity notes by A$150 million (US$103.6 million) with pricing of 32 basis points over mid-swap.
Issuer and leads on the latest Australian-origin corporate transaction in the euro market say execution conditions are largely welcoming to such deals. Even so, Telstra Corporation (Telstra)'s blockbusting outcome was significantly assisted by the issuer's combination of European track record and comprehensive execution strategy.
A new asset-backed securities (ABS) transaction from the Crusade programme, based on loans originated by Westpac Banking Corporation (Westpac)'s wholly owned subsidiary, St.George Finance, priced on April 15.
Hot on the heels of Korea Development Bank's debut transaction, World Bank priced the largest Kauri deal of the year to date on April 14. The supranational increased its 2021 Kauri by NZ$600 million (US$413.2 million). Deal flow in the Australian market was solid, though pricing activity remained restricted to the high-grade Kangaroo and financial-institution sectors.
Results of the Australian Fixed-Income Investor Survey for H1 2016, conducted by KangaNews in February and published in partnership with Fitch Ratings (Fitch), were published on April 15. The results show the Australian investor base to have declining expectations of credit supply growth, but to have only moderate concerns about the trajectory of the Australian economy.
On April 14, CAF- Development Bank of Latin America (CAF) (AA-/Aa3/AA-) priced an increase to its September 2026 Kangaroo bond. According to KangaNews data, the line was introduced on March 23 this year in a A$110 million (US$83.8 million) transaction priced at 184.75 basis points over Australian Commonwealth government bond.
On April 14, World Bank (IBRD) (AAA/Aaa) priced an increase to its January 2021 Kauri bond. At NZ$600 million (US$413.6 million) the increase is the largest Kauri transaction of the year, according to KangaNews data, supplanting the NZ$550 million sold when World Bank debuted the same bond on January 13.