Gradual impact expected from corporate repo-eligibility
Australian market participants generally expect only a gradual and marginal impact from the Reserve Bank of Australia (RBA)’s 5 May decision to make certain corporate bonds eligible collateral for open market operations. Even so, the criteria encompass a massive portion of Australian dollar corporate debt and took the market by surprise.
BNG’s Kangaroo benchmark sends a positive signal for SSA Kangaroos
BNG Bank’s benchmark Kangaroo deal priced on 30 April was the first broadly distributed new line established in Australian dollars by a supranational, sovereign and agency (SSA) borrower in 2020. Deal sources say relative value to Australian semi-government borrowers drove demand.
Australia-to-Europe pipeline continues as APA returns
APT Pipelines, the borrowing entity of APA Group, has returned to the euro market for the first time since its 2015 debut. Deal sources say the borrower’s credit story and lack of exposure to oil enabled a successful transaction amidst a pocket of volatility.
Competition at risk as fintech lenders potentially slip through the cracks
COVID-19 has thrown up challenges even for the most established capital markets borrowers. The crisis is particularly acute for newer financial institutions with shorter track records and smaller asset books. Government support should help, but a protracted downturn could make survival of the fittest a best-case scenario.
Read more: Competition at risk as fintech lenders potentially slip through the cracks
Anatomy of a taxonomy
In March, Europe’s technical expert group on sustainable finance (TEG) delivered the final report on the EU’s taxonomy for climate change mitigation and adaptation. The taxonomy – and the green bond standard (GBS) that is expected to follow it – will have global ramifications for sustainable finance including opportunities and challenges for Australasian market participants.