Canadian banks show Australian market is open for low-risk, familiar credit
The Australian dollar credit market has been reopened by three Canadian bank covered bond deals that priced within a week. Each deal showed signs of market development, although demand remains driven primarily by bank balance sheets as liquidity gradually improves with central bank support.
AOFM’s SFSF investment adds secondary support and considers forbearance fund
The Australian Office of Financial Management (AOFM) has provided an update on how its Structured Finance Support Fund (SFSF) will invest. The 9 April announcement describes a broad allocation strategy, including helping to clear an “overhang developing in the secondary market” and working with the Australian Securitisation Forum (ASF) to support securitisation trusts affected by missed interest payments.
SAFA deal highlights semi-governments’ fight for volume and stability
The Australian semi-government sector is undertaking a flurry of issuance in syndicated and privately placed format, as borrowers seek to stay ahead of growing funding tasks. Deal sources say the market is functional but challenging, as issuers try to overcome substantial sovereign supply and an evolving central bank buying programme.
NZDM talks strategy following return to primary market
New Zealand Debt Management (NZDM) faces a mountain of issuance in the coming months despite a NZ$3.5 billion (US$2.1 billion) May 2031 syndicated transaction printed on 7 April. The sovereign debt-management agency spoke to KangaNews about its strategy in the wake of the new transaction.
IFC is first Kangaroo mover as COVID-19 raises social bonds’ relevance
International Finance Corporation (IFC)’s latest Kangaroo social bond leverages increased recognition of the product’s utility in the COVID-19 crisis, the issuer states. It is the first new green, social and sustainability bond line established in the Australian dollar market this year.