APRA discloses transitional capital treatment for securitisation
In line with plans revealed by the regulator at the end of November, on December 10 the Australian Prudential Regulation Authority (APRA) sent a letter to banks explaining its revised capital relief approach to securitisation. The new policy offers authorised deposit-taking institutions (ADIs) a deduction from tier one capital requirements relating to the volume of subordinated securitisation tranches they have to retain on balance sheet.Domestic corporate volume could double in 2011
Australian market intermediaries are confident the level of investor appetite for corporate credit they have already seen in 2010 could double the year's issuance volume if enough deals are offered in domestic format. With local execution risk apparently fading as a concern among corporate borrowers, market participants believe issuance will come from a wider sphere of names – including the top tier of Australian corporates.ARTC tightens and upsizes debut domestic bond issue [UPDATED]
Australian Rail Track Corporation (ARTC) (Aa2) priced its inaugural domestic medium-term note (MTN) transaction on December 9, with the size of the issue increased to A$200 million (US$195.6 million) and its margin tightened by 5 basis points to 145 basis points over swap. The seven-year deal was launched a day previously at an indicative volume of A$150 million.
Third ABS launch in a week as Wide Bay looks for A$250 million
Wide Bay Australia (Wide Bay) has launched a new residential mortgage-backed securities (RMBS) deal, with an indicative volume of A$250 million (US$245.9 million) across four tranches. WB Trust 2010-1 is the third asset-backed deal to come to the market this week, following hot on the heels of the launch of a Bendigo and Adelaide Bank RMBS and an automotive asset-backed securities deal from Capital Finance Australia.Securitisation market showing no signs of stopping as two new deals launch
The asset-backed market continues to see activity in the last weeks of 2010 with two new deals launching in recent days and at least one more possibly to come before year end. The most recent residential mortgage-backed securities (RMBS) launch, from Bendigo and Adelaide Bank (BEN) on December 7, features an innovative capital structure with more than 50 per cent of the trade made up of a series of bullet tranches.