Momentum key as more sectors open for business in Australia
The Australian market has seen a significant boost in the past week with three asset classes which have been relatively quiet so far in 2011 – the true corporate sector, covered bonds and financial institution (FI) Kangaroos – all seeing deal flow. Market participants are now focusing on how much momentum for diversity of supply will be generated by these transactions, with most believing the corporate market remains the heaviest bid.
Asset-backed momentum continues with new A$1 billion ME Bank deal [UPDATED]
On March 18, ME Bank priced the second Australian securitisation transaction of the week and the first in the domestic market, completing a new A$1 billion (US$995.8 million) residential mortgage-backed securities (RMBS) deal. The deal - which was upsized from a launch volume of A$599 million - follows the A$841.9 million-equivalent asset-backed securities (ABS) transaction issued by Macquarie Leasing which contained six US-dollar denominated senior tranches.
Macquarie Leasing upsizes second USD-denominated ABS [UPDATED]
The first Australian asset-backed securities (ABS) transaction of 2011 has been completed, with Macquarie Leasing pricing a new deal predominantly comprising six US dollar-denominated senior tranches alongside smaller Australian dollar pieces. The A$841.9 million (US$843.3 million) equivalent transaction was upsized from a launch volume of A$567 million, and makes Macquarie Leasing the first Australian securitiser to bring two US dollar deals since the financial crisis.CIBC extends covered bond tenor with 2016 Kangaroo [UPDATED]
The return of Canadian Imperial Bank of Commerce (CIBC) (A+/Aa2, with covered bond programme ratings of AAA/Aaa/AAA) to the Kangaroo covered bond market has extended the duration of the asset class in Australia, with the bank pricing a new A$700 million (US$701.8 million) five-year transaction on March 11. The two previous post-crisis Kangaroo covered bonds have both been three-year deals.J.P. Morgan Chase issues first unsecured FI Kangaroo of 2011 [UPDATED]
For the second year running, J.P. Morgan Chase (A+/Aa3/AA-) has launched the first unsecured financial institution (FI) Kangaroo deal of the year, with the bank pricing a new A$600 million (US$604.6 million) five-year transaction on March 9. The same issuer reopened the benchmark FI Kangaroo market post-crisis with a A$1 billion (US$1 billion) five-year deal priced on March 4 2010.