APRA lays out positive agenda for securitisation regime
The regulatory future of securitisation in Australia looks positive following constructive comments on the nature and purpose of the asset class made on November 11 by Charles Littrell, executive general manager at the Australian Prudential Regulation Authority (APRA). Included in his remarks was the confirmation that, subject to certain provisos, Australia will likely get its own master trust regime.
Five years works for Telstra in its latest AUD benchmark issue
Telstra Corporation (Telstra) says its latest domestic benchmark bond issue, which priced for A$500 million (US$473.4 million) on November 8, attracted strong support from domestic and international investors despite its five-year tenor. Australia's corporate bond market has tended to focus on seven-year deals in the second half of 2013 as investors seek higher yield.
Song remains the same in big four results: deposits up, wholesale funding down
The three Australian major banks to have issued annual results between October 29 and November 4 all reiterated the same story that has characterised capital and funding efforts since the financial crisis. Deposit funding continues to creep upward and wholesale issuance has fallen – though at least one of the majors suggests its aversion to wholesale issuance growth might change in response to future credit growth.
New SSA Kangaroo deals help maintain market consistency
Two new deals from KfW Bankengruppe (KfW) and Inter-American Development Bank (IADB) priced this week, joining a recent run of supranational, sovereign and agency (SSA) Kangaroo issuance. Market participants say strong demand and a conducive basis swap is keeping deal flow steady, although lower funding requirements and repeat issuance from a number of borrowers will likely keep volume moderate for the rest of 2013.
Australia still safe haven despite international pressures, says AOFM
In its annual report the Australian Office of Financial Management (AOFM) characterises its 2012/13 financial year as one that it has spent focusing on the long-term development of the Commonwealth's funding portfolio in the face of challenges which it also expects to continue in 2013/14.