A bridge to where?
On 23 March, KangaNews hosted a live dial-in featuring some of the leading market economists covering Australia. It was the same illustrious panel that was to be a highlight of the KangaNews Debt Capital Markets Summit – which had been scheduled for the same day. In a rapidly changing world, the economists provided insight into a unique and vast, but practically unquantifiable, risk.
RBNZ joins the QE choir
The Reserve Bank of New Zealand added its voice to the global chorus of central banks implementing unconventional monetary policy measures with the launch of a large-scale asset purchase programme on 23 March. This is designed to reverse tighter funding conditions from the COVID-19 crisis.
RBNZ steps up liquidity measures
The Reserve Bank of New Zealand (RBNZ) has introduced a range of new measures to ensure the smooth functioning of financial markets. The measures, announced on 20 March, are aimed at keeping short-term interest rates low amidst the COVID-19 crisis.
Nonbanks to be primary beneficiaries of AOFM’s securitisation investment programme
The Australian Office of Financial Management released further details on March 20 about its A$15 billion (US$8.8 billion) fund to support authorised deposit-taking institutions (ADI) and nonbank lenders via purchases of asset-backed securities. The AOFM revealed it would “provide support primarily (but not exclusively) within the non-ADI market”.
New AOFM securitisation purchases could dominate 2020 market
The A$15 billion (US$8.5 billion) made available to the Australian Office of Financial Management (AOFM) to support bank and nonbank lenders via purchases of asset-backed securities could be enough to account for the bulk of the public securitisation market for the balance of 2020.