Positive response to AOFM's RMBS bid but questions remain
Securitisation market participants have come out broadly in favour of the September 26 announcement by the commonwealth treasury that Australian Office of Financial Management (AOFM) will buy A$4 billion (US$3.19 billion) of mortgage-backed assets, though doubts remain regarding how the plan will be put into action and its overall efficacy.Global investors told IWT changes will be official soon
Political progress on the exemption of semi-government bonds from interest withholding tax (IWT) was a central topic of discussion as Commonwealth Bank of Australia (CommBank) and Queensland Treasury Corporation (QTC) brought Australian state treasuries and government treasuries from both Australia and New Zealand together with international investors in Australia on September 24-27.
Challenger prices first non-bank Aussie RMBS since July
The Challenger Millennium Series 2008-1 Trust RMBS deal priced on September 19, riding out heightened market volatility since its opening a week previously and even upsizing slightly, to A$440.8 million (US$355.11 million) from its indicative A$400 million. The transaction was led by nabCapital, Royal Bank of Scotland Australia and Barclays Capital.MuniFin in and out in a day to double Kauri
Municipality Finance (AAA/Aaa) (MuniFin) doubled the size of its only outstanding Kauri bond, the 2011, on September 23, adding NZ$100 million (US$68.81 million) to its size in a transaction that launched and priced in a day to reduce the impact of volatile markets.Open deals in question as Westpac postpones NZ domestic
The status of deals open in the Australian and New Zealand markets has been put under scrutiny as Westpac New Zealand (AA/Aa2) (Westpac) postponed the five-year domestic deal it launched on September 8, citing the ongoing uncertainty in global markets.