DBS highlights global covered-bond demand and tight pricing
DBS Bank (DBS) priced the first Kangaroo covered bond since September 2017 on 17 October. The issuer says global demand for covered bonds has been higher in 2019 than in previous years and adds that the stability of the Australian dollar market compared with other alternatives makes it particularly attractive.
Fuel but no fire
The European Central Bank (ECB) confirmed another round of QE on 12 September, locking in what markets have been anticipating throughout 2019. The European political, economic and central-bank landscape is shifting but unconventional monetary policy seems set for the foreseeable future – despite questions about its efficacy in the real economy.
10-year demand shifts the dial for Dexus’s domestic appetite
The domestic bond market has supported a steady flow of 10-year corporate deals in recent months. Dexus Finance (Dexus) is the latest corporate to have issued at this tenor domestically and the issuer says the ability consistently to price deals at the long end shifts its appetite for domestic-market deals significantly.
Read more: 10-year demand shifts the dial for Dexus’s domestic appetite
SMFG receives bumper domestic support for latest Australian dollar TLAC deal
Consistent Australian dollar issuance, as well as further deals from its Japanese peers, resulted in significant domestic investor support for Sumitomo Mitsui Financial Group (SMFG)’s latest transaction. Deal sources say technical factors on the buy and sell side are proving supportive for global financial institution (FI) issuance in Australian dollars.
Fixed-income investor survey: downtempo notes
The H2 2019 iteration of the Fitch Ratings (Fitch)-KangaNews Australian Fixed-Income Investor Survey suggests asset managers have a relatively negative outlook on the Australian economy. Geopolitical risk is top of the agenda, while investors anticipate further monetary stimulus and a weak operating environment for local business.