News
On December 4, International Finance Corporation (IFC) (AAA/Aaa) priced an increase to its April 2025 Kangaroo line. According to KangaNews data, this is the third public tap of IFC's longest outstanding Kangaroo bond.
Westpac Banking Corporation (Westpac) priced its second prime residential mortgage-backed securities (RMBS) issue of 2014, with expected ratings having been assigned to the new self-led deal on November 27. WST Trust Series 2014-2 has a three-tranche structure and has been upsized from an indicative aggregate volume of A$1 billion (US$853 million).
On December 3, World Bank (AAA/Aaa) priced an increase to its October 2021 Kauri bond. This is the first tap to the line which, according to KangaNews data, was originally launched in September this year.
The KangaNews league table for intermediaries in the Australian securitisation market – Australian dollar tranches excluding self-led deals – sees a number of climbers and fallers during 2014 with only two out of 10 active banks retaining their ranking in the year to date. The 10 banks have led 35 domestic currency securitisation deals accounting for a total of A$17.1 billion (US$14.5 billion) to November 25 this year.
J.P. Morgan Chase (A/A3/A+) priced a new self-led five-year Kangaroo benchmark deal on December 2. According to KangaNews data, it is the first time the borrower has issued a deal in the Australian market since it priced a five-year dual-tranche transaction in May last year.
On December 2, Australian Rail Track Corporation (ARTC) (Aa2) priced a A$175 million (US$148.9 million) five-year fixed-rate Australian dollar deal, having upsized by A$25 million from launch. Pricing hit the wide end of a guidance range of 80-85 basis points over semi-quarterly swap.
In his December commentary on the monthly Reserve Bank of Australia (RBA) cash-rate decision, KangaNews columnist, Warren Bird, notes a slight change in wording used by the reserve bank and says it hints at an emerging cause for concern around the fundamentals of the Australian economy.
KANGANEWS AWARDS 2014: WINNERS ANNOUNCED
Slow but steady deal flow continued into the last week of November on both sides of the Tasman Sea. Teachers Mutual Bank and Queensland Motorways issued debut domestic deals while Fleet Partners returned to the Australian securitisation market pricing its second-ever term asset-backed deal.
Perceived uncertainties around the lenders' mortgage insurance (LMI) methodology deployed by Standard & Poor's Ratings Services (S&P) appear to have changed Australian issuers' ratings preferences on residential mortgage-backed securities (RMBS) deals, and may have caused a deal-flow hiccup. The most recent pair of RMBS deals – from Beyond Bank and AMP Bank (AMP) – came to the market without a rating from S&P.
Fleet Partners' priced its first term-funding Australian dollar asset-backed securities (ABS) deal since 2010 on November 27. The transaction – FP Turbo Series 2014-1 Trust – was upszied from an indicative volume of A$190 million (US$163.5 million) across seven tranches.