News
RedZed Lending Solutions (RedZed) upsized and priced its first residential mortgage-backed securities (RMBS) deal of 2015 on September 10. The transaction – RedZed Trust Series 2015-1 – had indicative volume of A$200 million (US$139.2 million) across eight tranches.
As was widely expected by analysts, the Reserve Bank of New Zealand (RBNZ) cut the official cash rate (OCR) by 25 basis points, to 2.50 per cent, on September 10. Analyst commentary focuses on the fact that the RBNZ maintains an easing bias, though most believe the reserve bank remains in "data watch mode".
On September 9, Telstra Corporation (Telstra) (A/A2/A) launched and priced a new seven-year benchmark in the Australian market. The transaction came hard on the heels of another seven-year domestic deal, from Australia Pacific Airports Corporation (A-/A3), which priced for A$250 million (US$175.5 million) at a final spread of 137 basis points over semi-quarterly swap on September 8.
In the wake of Australia's first non-financial corporate issue since Apple's jumbo deal in August, issuer and lead managers insist the outcome of Australia Pacific Airports Corporation (Melbourne Airport)'s first domestic deal since 2013 demonstrates market capacity remains robust. Pricing continues to hold up versus offshore alternatives, meanwhile.
On September 8, Australia Pacific Airports Melbourne (Melbourne Airport) (A-/A3) priced a new, seven-year benchmark in the Australian market.
On September 8, Toronto Dominion Bank (TD Bank) (AA-/Aa1) priced a new, three-year, senior-unsecured Kangaroo bond. According to KangaNewsdata, the borrower has visited the Kangaroo market on two previous occasions, in both senior-unsecured and covered formats.
On September 7, commercial print company PMP (NR) revealed it was targeting a new A$35-40 million (US$24.2-27.7 million) four-year bond. According to the forthcoming deal's lead manager, FIIG Securities, PMP will be the first Australian mid-cap corporate issuer to refinance an existing bond via a new issue.
The most prominent Kangaroo transaction during the week under review came from Auckland Council, which priced its debut public Australian dollar deal in search for investor and tenor diversity. The Kangaroo market provided some additional deal flow, while the largest single transaction of the week was a securitisation from Commonwealth Bank of Australia.
Commonwealth Bank of Australia (CommBank) priced its second residential mortgage-backed securities (RMBS) deal of 2015 on September 4. The self-led transaction – Medallion Trust Series 2015-2 – was upsized from indicative volume of A$1 billion (US$713.6 million) across three tranches.