Direct insights: AOFM says RMBS divestment process remains on track
The Australian Office of Financial Management (AOFM)'s Canberra-based chief executive, Rob Nicholl, and director of financial risk, Michael Bath, have shared insights with KangaNews around their assessment of the progress to date of the agency's divestment of residential mortgage-backed securities (RMBS).
Market technicals support SSA Kangaroo resurgence
Issuers and intermediaries predict the deluge of supranational, sovereign and agency (SSA) Kangaroo issuance is likely to continue, thanks to a range of market-altering technical factors. Uncertainty around Greece has affected not only the cross-currency basis swap but also appetite for Europe-origin credits, revealing issuance opportunities.
Market responds to APRA's higher risk-weight requirement for IRB banks
On July 20, the Australian Prudential Regulation Authority (APRA) revealed that from July 1 2016 it will be increasing the amount of capital required for Australian residential mortgage exposures by authorised deposit-taking institutions (ADIs) which use the internal ratings-based (IRB) approach. The latest measures affect Australia's major banks and Macquarie Bank – but leave the requirement for Australia's regional banks – which are already required to hold more capital – unchanged.
Major-bank funding roundup: issuance persists despite global volatility
Australia's major banks have raised a combined equivalent of A$12.8 billion (US$9.5 billion) in global markets in July to date, despite a prolonged phase of Greek-debt and Chinese-equity-market induced global volatility. Bank funders assess the accessibility of global markets during the period and share their predictions for fundamentals going forward.
More clarity emerges from APRA on "top quartile" bank capital requirement
On July 13, the Australian Prudential Regulation Authority (APRA) published a study comparing Australian major bank capital ratios with those of their international peers. The study is the next step in APRA's response to the Australian financial-system inquiry (FSI) recommendation that Australian banks be required to be in the top quartile of global banks for capital.