FI issuance returns to Australian market with three years the focus
Benchmark financial institution (FI) issuance returned to the Australian domestic market in July, with a total of A$3.9 billion (US$2.9 billion) printed across a trio of public three-year deals. With market volatility limiting FI issuance in preceding weeks, deal sources say a build up in investor cash as well as issuer willingness to execute at investors’ preferred tenor drove the transactions.
Zurich uncovers long-tenor demand with club-style deal
Ongoing demand for long-dated Australian dollar product, predominantly from specific cohort of investors in Asia, helped Zurich Finance Australia (Zurich) to execute a rare 20-year benchmark financial-institution (FI) senior deal in July. Demand is niche, but market sources insist the outcome is an important step in the continued evolution of the Australian market.
Retail-led sub supply boosts New Zealand corporate issuance
A trio of subordinated corporate debt deals priced in New Zealand between late May and early July, in what intermediaries say is a sign that local retail investors are supportive of issuance despite challenges in other funding markets. Scarcity of debt securities with the attractive headline yield offered by sub debt drove demand, they add.
SDGs and the common language of understanding impact in sustainable finance
Debt-market-relevant institutions are increasingly integrating the UN sustainable development goals (SDGs) into their sustainability agendas, with potential consequences for green and social funding. The critical role of the SDGs is to provide a common language for capital-markets participants to assess impact.
Read more: SDGs and the common language of understanding impact in sustainable finance
High-grade demand in a rising rates world
The big story in the Australian dollar high-grade market in 2018 has been 10-year US Treasuries (USTs) consistently yielding more than the equivalent Australian Commonwealth government bonds (ACGBs) – with little prospect of a reversion. KangaNews spoke to a range of dealers in June to get their read.