Inflation-linked bonds on the menu as RBNZ’s appetite grows
Reserve Bank of New Zealand governor, Adrian Orr, says inflation-linked bonds were chosen for inclusion in an expanded large-scale asset purchase (LSAP) programme to align with its principles for use of unconventional monetary policy. The reserve bank also hosed down talk of imminent deployment of negative interest rates but said banks should be ready for such a move by the end of this year.
World Bank’s Kauri tap contributes to COVID-19 response
Normalisation in the cross-currency market opened a New Zealand dollar funding opportunity for World Bank, as part of the borrower’s record funding drive in response to the COVID-19 crisis.
QBE takes the lead for international borrowers in 144A AT1
QBE Insurance has become the first offshore-domiciled issuer to execute a capital transaction in the US 144A market since the escalation of the COVID-19 crisis, with a deal that leads say has piqued the interest of bank and insurance borrowers globally.
Real-money investors support Australia’s first CPT covered bond
Deal sources say real-money investors embraced Bank of Queensland (BOQ)’s decision to print the first conditional pass-through (CPT) covered bond in Australian dollars. The A$750 million (US$483.8 million) five-year deal priced on 7 May.
Yen-denominated notes to be a new feature for Liberty RMBS
Including yen-dominated notes in its latest residential mortgage-backed securities (RMBS) deal is the culmination of many years work with Japanese investors, Liberty Financial says. It expects issuing in yen will form a component of its ongoing funding strategy.