Deal and ratings review, week ending October 28 2011
The first non-financial corporate transaction was completed in the Australian market in the week beginning October 25. Elsewhere, markets were generally subdued with Woolworths (A-/A3) completing a hybrid deal and Bendigo and Adelaide Bank launching a new residential mortgage-backed securities transaction.Bank funding guarantees back on European agenda
A return to the era of government-guaranteed bank funding came closer on October 26, when a European Union (EU) leaders' statement revealed guarantees are an important constituent part of a plan to shore up European banks' medium-term funding. The plan does not currently have significant detail attached, but the EU statement says measures are "urgently needed and are necessary in the context of strengthening prudential control of the EU banking sector".NAB excludes internal RMBS from liquid assets calculation
National Australia Bank (NAB) gave a strong hint of its expectations for Australia's future liquid assets regime at its annual results presentation on October 27, by excluding its A$21 billion (US$22 billion) of internal residential mortgage-backed securities (RMBS) from its liquid asset holdings. The bank also disclosed a larger and more conservatively constructed liquids book than the most recent previous big four bank to announce results.BEN adds A$250 million to latest RMBS [UPDATED]
A new residential mortgage-backed securities (RMBS) deal from Bendigo and Adelaide Bank (BEN) priced on October 28. The transaction was upsized to A$750 million (US$800.3 million) from its indicative volume of A$500 million, and is the issuer's second RMBS transaction of 2011.