News
The Reserve Bank of New Zealand (RBNZ) shifted out of a neutral stance at its third official cash rate (OCR) meeting of 2015, analysts note. At the April 30 meeting the RBNZ kept the rate on hold at 3.50 per cent, while the accompanying statement demonstrated what is being interpreted by most as the adoption of a clear easing bias.
On April 29, Heritage Bank (BBB+/A3) priced a new three-year senior-unsecured domestic bond. According to KangaNews data, Heritage Bank has issued senior-unsecured debt in the local market on just one prior occasion. That A$200 million (US$156.7 million) two-year floating-rate note is due to mature in November this year.
On April 24, Export Development Canada (EDC) (AAA/Aaa) priced a new five-year Kauri bond. According to KangaNews data, the deal is the borrower's first visit to the New Zealand dollar market in 2015. EDC most recently priced a NZ$125 million (US$94.5 million) tap to its 2019 Kauri line in November last year. That deal had pricing of 17 basis points over swap.
Issuance activity turned up the pace for the week under review. Flow in the Kangaroo market was particularly robust with seven new deals from a variety of issuers.
A new Australian dollar asset-backed securities (ABS) issue by Flexirent Capital, a subsidiary of FlexiGroup has priced. The forthcoming transaction, Flexi ABS Trust 2015-1, has a volume of A$210 million (US$163.4 million) across six tranches.
Credit Suisse Sydney Branch (Credit Suisse Sydney) (A/A1/A) priced a new five-year Australian dollar benchmark transaction on April 23, in what was the issuer's first deal in the domestic market this year.
The new Australian dollar prime and non-conforming residential mortgage-backed securities (RMBS) issue by Liberty Financial was priced on April 23. The transaction, Liberty Series 2015-1, priced in line with the deal's indicative volume of A$500 million (US$385.6 million) across eight tranches.
On April 22, European Investment Bank (EIB) (AAA/Aaa/AAA) mandated a new five-year bond in the Australian market. The transaction is EIB's third in the local market in 2015, after an earlier tap to its May 2018 Kangaroo line and an extension of its curve out to 2025.