Regional demand strong for Australian dollar tier-two
Crédit Agricole priced a A$600 million (US$412.7 million), 15-year non-call 10-year tier-two EMTN deal on 21 May. The deal surprised to the upsize on volume and brought significant diversification of investors according to Crédit Agricole CIB’s syndicate in Australia and Hong Kong, who say the result was sufficient to pique the issuer’s interest in further Australian dollar issuance.
Read more: Regional demand strong for Australian dollar tier-two
AOFM proposing a broad approach to ABSF investment
The Australian Office of Financial Management (AOFM) published draft investment principles for the Australian Business Securitisation Fund (ABSF) on 23 May. The proposed investment approach is notably broad, with the AOFM planning to take a “principles-based rather than prescriptive” approach to catalysing SME lending.
Opinions divided on impact of APRA’s surprise affordability floor change
Analysts agree that the Australian Prudential Regulation Authority (APRA)’s decision effectively to lower the affordability floor banks are required to apply to mortgage lending is a surprising move. But there is no clear consensus on how material the change will be to the mortgage market, house prices or the rates outlook.
World Bank’s Bond-i enters new phase as secondary trading gets underway
In the next step in the evolution of applying blockchain technology to debt capital markets, it is now possible to trade World Bank’s Bond-i on the blockchain platform. Participants say interest in the platform has only continued to accelerate since the deal was introduced in August 2018, and that further development is still ongoing.
USPP market still hitting it out of the park for Australian corporates
The US private placement (USPP) market has continued to attract double the issuance volume of the Australian domestic market for corporate borrowers despite less competitive US dollar funding costs for Australian corporates during 2019. Sources say USPP pricing is back to a historic low and shows little sign of weakening.