Port of Brisbane achieves record pricing for its domestic market return
Port of Brisbane (BBB) set a new pricing benchmark for the Australian domestic market when it returned to issuance after a year's hiatus. The market's currently highly competitive pricing edge is noted by the borrower – which also flags its desire to return to domestic issuance in order to continue building out its curve.
Australia's sandstone universities continue to make the grade
University of Melbourne (AA+) became the second university to access the domestic corporate bond market in 2014, printing a debut A$250 million (US$234.1 million) seven-year issue on June 24. The solid fundamentals of higher-education issuers mean a continued wave of issuance from this sector is unlikely – but this enhances the appeal of these bonds, leads say.
RBNZ lifts again and accelerated tightening path anticipated
On June 12, the Reserve Bank of New Zealand (RBNZ) lifted the official cash rate (OCR) – to 3.25 per cent, its highest level since January 2009 – for the third consecutive monetary policy meeting. The reserve bank suggests downside data surprises are balanced out by those to the upside, leading some analysts to deviate only marginally, and others not at all, from their previous expectations of a continued tightening cycle.
Lower term-funding requirement for TCorp as NSW asset sales shape direction
The term-funding requirement in New South Wales Treasury Corporation (TCorp)'s FY 2014/15 borrowing programme, released on June 18 following the New South Wales (NSW) state budget, is A$2.5 billion (US$2.33 billion) lower than previous expectations. The progress of the state's asset-sale plan will further shape the future direction of state finances, including TCorp's funding strategy.
QTC not yet factoring in asset-sale plans as peak debt approaches
Queensland Treasury Corporation (QTC)'s post-state budget funding update does not factor in the state government's plan to reduce debt by A$25 billion (US$23.2 billion) via a series of asset transactions. However, even before these transactions become a reality – which is conditional on the state government winning re-election in the next year – analysts note Queensland's improving fiscal path leading to an expected decline in debt levels from 2016-17.
Read more: QTC not yet factoring in asset-sale plans as peak debt approaches