Exclusive credit-investor insights: demand drivers
In the first of a series of three articles exclusive to KangaNews online, Australian credit investors reveal their outlook for the local market in 2015. Investors lay out their views on demand, supply and the macro outlook as they relate to financial institution (FI) and corporate bond dynamics in the year ahead.
Returning investor sector features as SSA Kangaroo market kicks off 2015 at pace
The Australian dollar market opened for business at the earliest opportunity in 2015 as a supportive basis swap facilitated a swathe of Kangaroo deals from supranational, sovereign and agency (SSA) borrowers. A marked upsurge in interest in SSA Kangaroos from a notable investor sector leads market participants to ponder the extent to which SSAs could substitute for potentially lower supply in other high-grade asset classes in 2015.
KfW getting closer to bringing its green-bond programme to Australia
KfW Bankengruppe (KfW), the Kangaroo market's largest issuer, is moving closer to bringing its "Green Bonds – made by KfW" programme to the Australian market. A funding update published by the agency on December 15 names Australian dollars as one of two currencies in which it is exploring offering green bonds in 2015.
Mid-year updates: Australia wobbles as New Zealand shows resilience
The latest half-year financial and economic review data show the New Zealand economy is moving from "rock star to rock solid" while Australia's budget targets are increasingly becoming a moving target, analysts say. The respective debt management offices are faced with accordingly divergent funding tasks.
RBA previously flagged willingness for other regulators to use macroprudential tools
Analysts believe new steps announced by the Australian Prudential Regulation Authority (APRA) as a means to "reinforce sound residential mortgage lending practices" represent a combined regulatory effort. Indeed, earlier this year the Reserve Bank of Australia (RBA) flagged its preference for macroprudential-type tools to be used, if at all, by the prudential supervisor rather than the reserve bank.