Corporates hail domestic development as cost of capital challenges loom
Participants at the Finance and Treasury Association (FTA)'s annual congress, which took place in Brisbane on November 19-21, have been impressed by the new depth and reliability of the AUD bond market. The main funding-related concern of treasurers appears to be the potential impact of regulation on the cost of capital, with derivatives reporting in particular coming under fire.
Australia rolls out the red carpet for Anglo American
The probability of strong post-pricing performance drove strong domestic investor interest in Anglo American's debut Kangaroo deal – enabling the deal to be doubled in size. In fact it could easily have been bigger still if it were not for the intraday execution strategy – but even so market participants agree the deal is positive for the continued development of the Australian market.
Financial system review high on super industry agenda, with bonds expected to feature
Australia's superannuation industry expects to be a central subject of the forthcoming national financial system enquiry. The apparent disconnect between superannuation capital and key Australian assets, including infrastructure and corporate debt, is also expected to be a focus, though superannuation market participants say they will resist anything which resembles a forced mandate.
AOFM talks strategy after issuing AUD market's largest-ever deal
The Australian Office of Financial Management (AOFM) priced a new A$5.9 billion (US$5.53 billion) 2033 syndicated issue on November 19 in what was the largest ever Australian dollar bond deal to date – the AOFM and Queensland Treasury Corporation both previously issued the largest volume at A$4 billion in May 2013 and February 2011 respectively.
Australia's securitisation market gears up for master trusts
Following the Australian Prudential Regulation Authority (APRA)'s confirmation that Australia will soon get its own master trust securitisation regime, market participants say Australia's first master-trust deals will likely not take long to come to fruition. However, the detail of APRA's revised APS 120 will be key – and implementation may not occur until 2015.