ASF conference day two: hunting for investors in dysfunctional markets
Discussion on the second day of the Australian Securitisation Forum (ASF)'s annual conference focused on the investor universe on- and offshore in an environment of seemingly never-ending market dysfunction. Borrowers say flexibility of funding options, in a world where disparate investor bases are offering unpredictable price points and unreliable execution capacity, will be key.Basis narrowing dwarfed by spread widening as Kangaroo shutdown cause
Lower-than-expected volume of covered bond issuance by the major Australian banks last week has caused the AUD/USD basis swap to narrow by at least 14 basis points in the past few days and consequently worsened Kangaroo issuance economics. However, intermediaries say the larger problem is seemingly relentless extreme spread widening – which has taken issuance off the table for Kangaroo borrowers for the foreseeable future and may change the characteristics of the market entirely going forward.ASF conference day one sets out goals and challenges of securitisation today
A trio of supervisory heavyweights headlined the first day of the Australian Securitisation Forum (ASF)'s annual conference on November 21 – but the content of the day's discussions was as much about the future makeup of bank funding and the Australian sector's global investor base as the details of regulation. Overall, regulators believe there should be a role for securitisation in future, but only as part of a multi-faceted funding mix that now also includes covered bonds.Suncorp returns to RMBS market with new A$1.25 billion deal [UPDATED]
Suncorp-Metway (Suncorp) priced a new A$1.25 billion (US$1.2 billion) prime residential mortgage-backed securities (RMBS) deal on November 23. The transaction was upsized from a launch volume of A$750 million and is Suncorp's first RMBS since it issued a A$1 billion deal in May 2010.