Demand set fair for major bank tier-two deals
National Australia Bank (NAB) made its first move towards filling its total loss-absorbing capacity (TLAC) tier-two requirement on 29 July, pricing a US dollar transaction which deal sources say maintained the momentum of recent predecessors. NAB’s callable structure also prompted particularly strong demand from investors in Asia, where appetite for spread product continues to build.
TCorp continues to bite into funding task
New South Wales Treasury Corporation (TCorp)’s pricing of a second benchmark deal in the space of a month means 2019 is already the issuer’s most active period for syndicated deals since 2013 as it seeks to make headway on a larger 2019/20 borrowing task.
Westpac NZ takes domestic volume opportunity
Westpac New Zealand (Westpac NZ) priced the local market’s largest-ever senior financial institution (FI) deal on 24 July. The issuer tells KangaNews undersupply in the market created the volume opportunity despite deposit rates remaining elevated.
ABSF to start cautiously before contemplating esoteric allocation
The Australian Office of Financial Management (AOFM) released its final investment principles for the Australian Business Securitisation Fund (ABSF) on 22 July. In speeches in Sydney and Melbourne, the AOFM suggested that ABSF investment will start cautiously in areas close to the existing market before moving in time to the most poorly served aspects of SME lending.
AusNet domestic deal hints at 10-year return
Conducive funding conditions spurred a return to long-dated local corporate issuance for AusNet Services (AusNet), which printed a 10-year deal on 24 July. The emergence of consistent opportunities for 10-year issuance spurred the Australian corporate market to its best-ever year in 2017, and some market participants believe investors’ hunt for yield may be reopening the window.