Investor diversity next target for Latitude following ABS upsize
Latitude Finance Australia (Latitude) upsized its most recent master-trust asset-backed securities (ABS) transaction on the back of demand that was especially supportive for lower-rated notes, the issuer says. Its next goal is further to diversity its investor base, a task it hopes will be assisted by the increasing breadth of the Australian dollar securitisation market.
US dollar tier-two demand holds up for CommBank
Commonwealth Bank of Australia (CommBank) printed its first tier-two capital deal since the confirmation of Australian total loss-absorbing capital (TLAC) requirements in the form of a US dollar deal priced on 5 September. CommBank is the last of the major banks to make a start on upsizing its tier-two stack but the issuer says it is well set to manage the task.
Nonresident RMBS deal marks another world first for Australian securitisation
The securitisation of a pool consisting solely of nonresident mortgages priced by Columbus Capital (Columbus) on 30 September is a world-first deal of this type, its arranger says. Assuaging investor and ratings agency concerns on cross-border risk was key to getting the deal off the ground, while the transaction’s success makes issuer and arranger confident there is a robust market for the product.
Diverse Australian dollar options open to global FIs
Declining interest rates and the global hunt for yield has opened pricing opportunities for offshore financial institutions (FIs) to issue Australian dollar additional tier-one (AT1) instruments for the first time in more than a decade. UBS Group (UBS), BNP Paribas and Societe Generale have all printed AT1 deals in Australian dollars since July.
A bigger slice of tier-two
The Australian Prudential Regulation Authority (APRA) determined on 9 July that Australia’s major banks will need to increase their capital ratios by 3 per cent of risk-weighted assets (RWAs) by 2024 to satisfy total loss-absorbing capacity (TLAC) equivalent requirements. How and where the major banks raise the capital will have ripple effects in the market.