AUD's inclusion in IMF COFER likely a lagging indicator
The suggestion by the International Monetary Fund (IMF) that the Australian dollar could in future be included in reporting of the currency composition of foreign exchange reserves (COFER) is more likely to be a sign of the currency's increased use in global reserves than a driver of future buying. In addition, market sources say reserve managers have been aware of the IMF's thinking for some months and any demand impact is mostly played out.
PBoC governor highlights Chinese bond market development and internationalisation
In a speech discussing implementation of the 18th National Congress of the Communist Party of China (CPC) – which will set the political agenda for China over the next five years – People's Bank of China (PBoC) governor, Zhou Xiaochuan, highlighted the country's bond market as a target for development. Zhou referred to both the mainland and Hong Kong markets and referred explicitly to the internationalisation of China's financial sector.
ABB debuts with A$400 million from A$1 billion-plus book
Swiss power and automation technology firm ABB (A/A2) priced its first Australian market bond deal on November 15, via fully-guaranteed local subsidiary ABB Finance Australia. The deal closed with final volume of A$400 million (US$414.4 million) – an upsize of A$100 million from launch – and attracted a book of over A$1 billion from more than a hundred accounts, according to its leads.
Q+A with Standard Life Investments
Edinburgh-based Sebastian MacKay, investment director at Standard Life Investments, who is part of a team managing US$2.5 billion of global bonds, talks to KangaNews about Australasian fixed income products and the global economy.
Record month and record year for Australian corporate issuance
Non-financial corporate issuance in Australia is set for an all-time record volume month in November 2012 having surpassed the record for full-year issuance by early in the fourth quarter. More than A$10 billion (US$10.4 billion) of true corporate bonds had come to market in 2012 by mid-November, the first time the Australian market has ever reached this milestone without the contribution of credit-wrapped paper.