TCorp funding programme unchanged as new lending grows
The projected funding requirement faced by New South Wales Treasury Corporation (TCorp) for the 2012/13 financial year is, at A$10.7 billion (US$10.6 billion), identical to the target for the current year that was set in June 2011. TCorp figures say an increase in new client funding for 2012/13 – to A$7.6 billion from A$4.5 billion – and a reduced level of pre-funding will offset a significantly reduced refinancing requirement.European and US advantages targeted from NZ covered bond legislation
Issuers and intermediaries believe the introduction of legislation to support New Zealand's covered bond regime will help the country's banks develop their offshore investor base – both for foreign currency securities and, potentially, for NZD-denominated paper. While emphasising that New Zealand banks have not struggled to issue covered bonds under the existing, regulated system, market participants say a legal setup could add price tension.More Australia-to-US securitisation flow as Macquarie prepares new ABS
Provisional ratings have been assigned to Macquarie Leasing (Macquarie)'s second predominantly-US dollar asset-backed securities (ABS) issue of 2012. Smart Series 2012-2 US Trust – a securitisation of auto loans – has provisional volume of US$400 million across its four senior tranches with the lower-rated notes denominated in Australian dollars for a combined volume of A$62.4 million (US$60.9 million).
Deal and ratings review, week ending June 8 2012
Australian and New Zealand markets lay low for the week ending 8 June: activity included two new launches with a subordinated and an asset-backed security expected in the coming weeks although no transactions priced. The New Zealand and Kangaroo markets remained void of public primary market activity.SAFA funding update projects higher requirement for 2012/13
A substantial benchmark bond maturity accounts for the bulk of the South Australian Government Financing Authority (SAFA)'s increased expected funding task of A$6.4 billion (US$6.2 billion) for the 2012/13 financial year. The total figure is A$2.7 billion higher than the equivalent for 2011/12, but the coming year includes a A$2.1 billion maturity in May 2013 while the current period contained no benchmark expiries.