NZDMO happy with use of syndication for oversubscribed 2020 listing [UPDATED]
The New Zealand Debt Management Office (NZDMO) cites market preference for immediate liquidity in a new benchmark line as the driver of its decision to use syndication for the listing of a new nominal benchmark line for the first time. The NZDMO placed NZ$2 billion (US$1.7 billion) in its new 2020 bond on April 10, and says it will consider further issuance of this type in future.
Currency diversity could be set to grow in offshore corporate issuance
Intermediaries ascribe the relatively measured first quarter of the year for Australian corporates in offshore markets primarily to supply rather than demand factors. In fact, with two well-subscribed euro deals already in the books some bankers believe global credit markets are sufficiently robust that 2013 might see additional diversification outside US dollar issuance by Australian names.
Analysts starting to see greater likelihood of end to RBA cutting cycle
The April 2 decision by the Reserve Bank of Australia (RBA) to leave the Australian cash rate unchanged, at 3 per cent, came as little surprise to local analysts. However, while post-decision commentary generally interprets the reserve bank's accompanying statement as little changed from the previous month, there is a gradually-growing suspicion that further rate cuts may now be less likely than had previously been expected.
Affected corporate hybrid issuers respond to S&P methodology change [UPDATED]
The long-awaited revised Standard & Poor's (S&P) methodology on assigning equity credit to corporate hybrids, which was published on April 2, has sent a pair of Australian issuers into damage control mode. Both the immediately affected firms – Santos and Tabcorp Holdings (Tabcorp) – immediately responded to negative rating actions, though taking differing approaches.
Domestic corporate issuance market enjoys solid outlook
The market for corporate issuance in the Australian domestic market was solid if unspectacular in the first quarter of 2013, although following three new deals from mid-March intermediaries are optimistic about a steady pickup in supply.