News
The Reserve Bank of New Zealand (RBNZ) surprised the market on June 11 by cutting the official cash rate (OCR) by 25 basis points to 3.25 per cent – the first OCR cut since March 2011. Analysts say the RBNZ is flagging the expectation of a further cut to come, although the consensus in the immediate aftermath of the latest decision is that the cut will not come at the next scheduled opportunity.
The Australian Office of Financial Management (AOFM) released an operational notice on June 10 which sets out the process by which it will auction its holdings of residential mortgage-backed securities (RMBS). Shortly afterwards, the AOFM also disclosed details of the first and second planned sales under its divestment programme, which are due to take place on June 24 and July 14.
Pepper Australia priced its first nonconforming residential mortgage-backed securities (RMBS) deal of 2015, on June 5. The transaction – Pepper Residential Securities Trust No.14 – is denominated in US dollars and Australian dollars for a combined equivalent volume of A$550 million (US$423.0 million) across 10 tranches.
Bank of Queensland (BOQ) (A-/A3/A-) mandated and priced an increase to its June 2018 floating-rate note (FRN) senior-unsecured bond on June 9. According to KangaNews data, the tap is the first to a line which was introduced in June last year.
KangaNews proudly presented the results of this year's Fixed-Income Research Poll during the first week of June. Deal flow continued at the same time: among the week's deals Dexus Wholesale Property Fund visited the Australian market for seven- and 10-year funding while Rabobank issued its first New Zealand domestic deal in listed format.
Canadian Imperial Bank of Commerce (CIBC) priced a new Australian dollar denominated five-year covered bond on June 5. According to KangaNews data, the issuer has not visited the Kangaroo market since it priced a A$500 million (US$388.3 million) covered bond in October 2013. That floating-rate note (FRN) had pricing of 52 basis points over bank bills.
ME, the new name for ME Bank, disclosed on June 5 that it will meet investors to update on the SMHL residential mortgage-backed securities (RMBS) programme – with a potential Australian dollar deal to follow. According to KangaNews data, ME has not issued RMBS for nearly a year, most recently pricing a A$1.45 billion (US$1.11 billion) SMHL transaction in July last year.
Energy Partnership Gas (Energy Partnership) (BBB-/Baa3) priced a new five-year fixed-rate senior-unsecured deal on June 4. The announcement follows a series of Australian dollar debt investor update meetings undertaken by the borrower in the week beginning May 11.
Dexus Wholesale Property Fund (DWPF) (A) launched and priced a new seven-year fixed-rate senior-unsecured domestic deal on June 4. The forthcoming deal priced in line with indicative pricing of 130 basis points over semi-quarterly swap.