H1 Australian issuance review: volume up but corporate market struggles
Australian bond issuance was healthy overall in the first half of 2019 but continued to struggle to produce credit diversity, according to KangaNews’s transaction data. Elsewhere, the securitisation market delivered volume and breadth while high-grade Kangaroo issuance swung back to the mid-curve.
CLF changes reflect changing market dynamics, says RBA
Reserve Bank of Australia (RBA) assistant governor, Christopher Kent, says adjustments to the committed liquidity facility (CLF) will reduce banks’ need for supplementary liquidity while ensuring strong incentives to manage liquidity risk appropriately remain in place.
Mid-curve return a sign of market intent for NRW.BANK
NRW.BANK issued its largest-ever Kangaroo market deal, and its first in the mid-curve since 2006, with a A$450 million (US$316.3 million), five-year transaction that priced on 19 July. The issuer’s Dusseldorf-based director, capital markets funding, Tatjana Beuer, talks to KangaNews about an evolving relationship with the Australian dollar market.
Domestic investors show tier-two appetite in ANZ deal
The Australian major bank influx into tier-two issuance continued on 19 July as ANZ Banking Group (ANZ) printed a domestic transaction. The issuer says it was strategically important to execute a sizeable and successful Australian dollar deal shortly after the Australian Prudential Regulation Authority (APRA)’s total loss-absorbing capacity (TLAC) announcement, and that domestic investor participation was particularly pleasing.
First mover: inside Westpac’s tier-two return and the Australian TLAC setup
Westpac Banking Corporation (Westpac) was the first Australian major bank to print a tier-two deal following the Australian Prudential Regulation Authority (APRA)’s final total loss-absorbing capacity (TLAC) requirement ruling. The issuer says a lower-than-expected incremental tier-two requirement makes the task more manageable and current conditions provided a tailwind, but longer-term questions are yet to be resolved.