Deal and ratings review, week ending August 3 2012
Although Australian dollar deal flow slowed down in the first week of August, the return of Queensland Treasury Corporation to syndicated benchmark issuance on August 1 helped keep issuance volume healthy. International deal flow also returned to New Zealand's market as World Bank priced the largest Kauri transaction since 2007, and while the Australian securitisation market remained quiet no fewer than three deals received preliminary ratings.FlexiGroup prices A$255 million return to ABS market [UPDATED]
FlexiGroup, which last issued in the asset-backed securities (ABS) market in June 2011, priced a new securitisation transaction with volume of A$255 million (US$267.1 million) on August 3. The transaction is a securitisation of nearly 120,000 consumer loan receivables, according to Fitch Ratings (Fitch), with home-related products like solar energy forming the largest contributing asset type at 50.6 per cent of the pool.Pricing and safe-haven status offers potential for Canadian Kangaroos
Issuers and intermediaries involved in recent Kangaroo deals from Canadian borrowers say attractive Australian dollar pricing and investor demand for the perceived safe-haven status offered by Canadian credits could help clear the way for further flow. Late July saw a flurry of Kangaroo issuance that included a brace of Canadian-origin deals, including a debut, for a total of A$950 million (US$996.9 million).
Pricing details on FirstMac's return to RMBS issuance
The second Australian residential mortgage-backed securities (RMBS) deal in three days priced on August 9, as FirstMac introduced its first transaction since December last year. The deal, FirstMac Mortgage Funding Trust Series 2012-1, has volume of A$300 million (US$316.6 million) spread across three rated and two unrated tranches.