Less frequent names circle as SSA Kangaroo "perfect storm" finds renewed vigour
The relative appeal of Australian dollar product appears to have rebounded, as Kangaroo supranational, sovereign and agency (SSA) market participants cite this among a number of drivers which have spurred year-to-date volumes to their highest levels since 2011. The market's latest issuer, FMS Wertmanagement (FMS), confirms very attractive market fundamentals drove its return to Kangaroo issuance after a three-year gap.
Aligning tax with financial system objectives remains a challenge
The review of Australia's tax system continues to attract interest and comment from senior financial markets figures, but the tone of the debate is lending substantial support to the status quo in areas which influence national asset allocation. Negative gearing, tax on superannuation and dividend imputation are all up for discussion, but the prospects of overhaul are complicated by the implications of change.
WA added to top mining names on negative ratings watch as iron-ore price decline bites [UPDATED]
Falling iron-ore prices – and a revised rating-agency projection of the future direction of Australia's key commodity export – caused a ratings impact on the state of Western Australia (WA) on April 14. Earlier the same day, eight global mining firms were also placed on negative credit watch by Standard & Poor's Ratings Services (S&P).
RBNZ offers additional clarity around future direction
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.
RBA holds in line with the narrow consensus
At its third monetary policy meeting of 2015 the Reserve Bank of Australia (RBA) surprised slightly more analysts than had correctly predicted its decision. Despite electing not to cut in April, analysts now point to ongoing caution around monetary policy on the part of the RBA – though some see signs in the bank's statement which they believe may mean a reduced likelihood of more cuts to come.