Investors on- and offshore confirm inflation interest as AOFM launches
Investors both domestic and international have confirmed the lead manager group's view that the Australian inflation-linked sector has become an increasing focus of attention in the lead-up to pricing of the Commonwealth government's return as an issuer. The Australian Office of Financial Management (AOFM) launched its first treasury indexed bond (TIB) deal since 2003 on September 29.EIB ends Kangaroo hiatus and lifts market volume past 2008 level [UPDATED]
A three-week break in Kangaroo market issuance was ended on September 29 by the European Investment Bank (EIB) (AAA/Aaa/AAA), with the issuer's A$550 million (US$480.92 million) 2014 increase also pushing annual Kangaroo volume for 2009 past last year's figure. Pricing on the transaction also marked a further tightening of margins for supranational, sovereign and agency (SSA) issuers in Australia.
APRA proposals could radically cut ADIs' liquid asset options
A discussion paper issued by the Australian Prudential Regulation Authority (APRA) on September 11 could lead to the universe of securities considered liquid assets for banks' prudential purposes being slashed. Market sources tell KangaNews this could mean authorised deposit taking institutions (ADIs) will not be able to hold bonds from the semi-government or supranational, sovereign and agency (SSA) sectors in their liquidity books.Kiwibank to roadshow ahead of first FI Kangaroo since 2007
New Zealand's Kiwibank (AA-) has confirmed its intention to become the first Kangaroo bond issuer outside the supranational, sovereign and agency sector for over two years, with the issuer planning to roadshow in Australia next week and follow investor meetings with a three- or five-year deal guaranteed by the New Zealand government.