Kauri market growth creates first SSA debut opportunities since 2010
New Zealand saw two European-origin supranational, sovereign and agency (SSA) borrowers price inaugural Kauri transactions in the space of a week in mid-May. Issuers and lead managers offer KangaNews their insights into the circumstances which have allowed two new high-grade borrowers to enter the New Zealand market for the first time.
Post-deal insights: latest developments in Australian wholesale tier-one
Australia's wholesale tier-one market took another developmental step in mid-May. Participants in the latest wholesale tier-one transaction offer insights around the precise level of institutional-investor take up of the market's two deals to date, and also reveal surprising information about how this cohort of investors can value the franking credit.
APRA says "common sense sometimes absent" from ADIs' mortgage-lending assessments
The Australian Prudential Regulation Authority (APRA) has offered the first public insights from its review of banks' mortgage-lending standards. The impression given by APRA's chairman, Wayne Byres, in a May 13 speech is that the regulator is far from universally happy with the way all authorised deposit-taking institutions (ADIs) calculate borrowers' likely ability to service mortgage debt.
Securitisation market responds to confirmation of AOFM portfolio sell down
A little over two years since the Australian Office of Financial Management (AOFM) ceased investing in residential mortgage-backed securities (RMBS), the government debt management agency announced on May 13 that it would be selling its approximately A$4.6 billion (US$3.7 billion) residual portfolio. Securitisation market participants' response to the news of a substantial forthcoming inflow for the secondary market to absorb contains some surprises.
Reporting season shows major banks diverging on capital strategy – for now
Half-yearly results announcements from three of Australia's big-four banks shone light on approaches to capital management which have started to diverge, at least for the time being. Meanwhile, one of the majors quantifies a negative impact on treasury income which it suggests has primarily been driven by Australia's newly restrictive liquid asset regulations.