QTC announces slight year-on-year drop in funding target
A week after the state of Queensland released its budget for the 2010/11 financial year, Queensland Treasury Corporation (QTC) (AA+/Aa1) announced a small fall in its expected funding task for the coming 12 months. There is also room for further reduction in the A$18.1 billion (US$15.4 billion) indicative borrowing programme as the projection does not account for potential asset sales or pre-funding in the remainder of June.Kiwi fund managers welcome BNZ's covered bond bow
The first Australasian covered bond, issued by Bank of New Zealand (BNZ) (AA/Aa2, with an issue rating of Aaa/AAA) on June 14, has been met with a positive response from the domestic investor base at which it was targeted. With some fund managers able to hold covered bonds outside their normal limits to unsecured bank paper there are also hopes the BNZ trade will soon be followed by more covered bonds in New Zealand.Positive sign for EIB as 2010 funding target revised down
On June 9 European Investment Bank (EIB) (AAA/Aaa/AAA) announced that its funding volume target for this calendar year has been revised down to €70 billion (US$84 billion), from the previous projection of €80 billion. Eila Kreivi, head of funding for the Americas and Asia Pacific at EIB in Luxembourg, says the lower funding volume is a result of revised lending plans for EIB's clients this year and supports the supranational's contention that it will not be called upon to fund any sovereign bailouts.
Signs of life in Australian market as issuance returns
There are indications that the Australian market is picking itself up off the canvas, with a small flow of primary market issuance, well-received budgets from the two biggest state borrowers and positive Chinese economic data all boosting confidence in the week to June 11. One semi-government, two supranational, sovereign and agency (SSA) Kangaroos and a big four bank have completed deals this week.