News
The Australian Prudential Regulation Authority (APRA) released its latest discussion paper on the local interpretation of the net stable-funding ratio (NSFR) for banks on March 31. The paper includes proposed treatments for a raft of assets and liabilities, with particular focus on – but no sign of concessions for – internally and externally securitised assets.
On March 30, Resimac announced plans to meet with residential mortgage-backed securities (RMBS) investors in Australia. According to lead managers Citi and National Australia Bank, a RMBS transaction may follow.
On March 30, Kommunalbanken Norway (KBN) (AAA/Aaa) priced an increase to its July 2025 Kangaroo bond. According to KangaNews data, the line was introduced in July 2014 for volume of A$30 million (US$22.8 million) and pricing of 82 basis points over Australian Commonwealth government bond (ACGB). The line was most recently increased in February, for A$40 million at 63.5 basis points over ACGB.
In the wake of the issuer's first-ever five-year and curve-extending new 10.5-year transactions, launched on back-to-back days in March, CAF – Development Bank of Latin America (CAF) tells KangaNews that continuing to further bolster its Kangaroo curve is a clear priority. The issuer continues to monitor the market for opportunities to do so despite its recent deal activity.
The downgrade of a clutch of Australian dollar corporate bond issuers from investment grade into high-yield territory has brought the issue of mandate restrictions back onto the agenda. With limited capacity for high-yield bonds in the domestic institutional space, local asset managers describe the challenges caused when bonds bought at investment-grade level fall below triple-B status.
Credit Union Australia priced its debut senior-unsecured deal in the Australian market in the week leading up to the holiday weekend, with A$200 million (US$150.1 million) of three-year floating-rate notes. CAF- Development Bank of Latin America also returned for two new Kangaroo deals.
Pepper Australia priced its first nonconforming residential mortgage-backed securities (RMBS) transaction of 2016 on March 24 with preliminary ratings assigned to four classes of notes on March 22.
Credit Union Australia (CUA) (BBB+/A3) priced a new, three-year Australia dollar floating-rate note on March 23. According to KangaNews data, the forthcoming transaction will be the issuer's first public senior-unsecured transaction in Australia, although it is a regular securitisation issuer. CUA most recently priced a A$750 million (US$571.2 million) residential mortgage-backed securities (RMBS) deal in February 2015, its largest RMBS since it issued the same volume in June 2007.