ABS flurry positive but not a sign of return to form
A clutch of asset-backed security (ABS) deals in the last weeks of the year is being taken by market participants as a positive sign for a gradual return to health in 2009, but sources connected to the recent deals from Challenger Financial Services (Challenger), Resimac and Macquarie Leasing counsel against over-optimism.Massive upsize for CommBank's guaranteed tranche
The government guaranteed 2013 maturity tranches of the deal priced by Commonwealth Bank of Australia (AA/Aa1) (CommBank) on December 10 were upsized to an unprecendented combined A$2.2 billion (US$1.45 billion) while the unguaranteed 2011 line the issuer brought at the same time achieved its A$500 million target.
New Zealand ending 2008 with wave of retail corporates
Retail demand in New Zealand appears to be holding up in the last few weeks of the year with a clutch of corporate and finance company transactions – the majority not benefiting from the government’s guarantee on retail funding – which could raise up to NZ$825 million (US$437 million).Credit trading changes as banks restructure Australian operations
The anticipated process of reorganisation following the credit downturn has started at a number of banks' Australian businesses, with J.P. Morgan and Citigroup among the institutions to cut back on Sydney-based secondary credit market activities in favour of centralised Asian operations.