Basel Committee homing in on climate risk
The Basel Committee on Banking Supervision published a report on 14 April detailing the transmission mechanisms of physical and transition climate risks into financial stability risk. Risks can be observed through traditional lenses, but the committee says more research is needed fully to understand the potential impact of climate change on the financial system.
Central banks to shift goal posts as sovereign debt rises
The findings of Janus Henderson Investors’ inaugural sovereign debt index report point to an evolving set of risks faced by central banks as aggregate sovereign debt continues to rise. The fund manager says central-bank policy is evolving to focus on financial stability instead of inflation targeting.
Brighten’s star rises with Solaris nonresident RMBS debut
The Australian dollar nonresident residential mortgage-backed securities issuer pool widened with Brighten Home Loans’ debut deal. The issuer says capital-market funding has been a goal since the business’s establishment and that interest in the asset class is growing with increased supply.
VPN targets volume in latest Australian dollar deal
Victoria Power Networks (VPN) says it used a multitranche structure for its latest domestic deal to maximise capacity as investors’ tenor preference has shortened in recent weeks. Overall demand appears to be holding up, as VPN priced its A$700 million (US$541.4 million) deal on the same day as NSW Electricity Networks Finance executed a A$300 million eight-year transaction.
Ongoing strong asset growth brings BEN back to capital-relief RMBS
Bendigo and Adelaide Bank’s return to capital-relief residential mortgage-backed securities issuance comes as regional banks continue to experience above system book growth. In an increasingly competitive lending market, the issuer believes it is well positioned as it prepares for the end of the Reserve Bank of Australia’s term-funding facility.