Global high-grade debt as the world changes
While markets have remained liquid and tradeable throughout 2018, there can be little doubt that the period of almost unprecedented beneficial funding conditions that pervaded up to the end of 2017 has passed. At their annual global-markets roundtable in London in June, ANZ and KangaNews heard the latest thinking from key issuer and investor players.
Asia delivers scale
Pricing became challenging for Australian issuers in the Asian-targeted US dollar Reg S market later in the first half of 2018, after a flurry of corporate transactions over the preceding 12 months. But market participants in Asia insist the regional liquidity pool will increasingly challenge old favourites like US private placements (USPPs) and domestic issuance for Australian-origin flow.
SAFA says lack of supply worked in its favour in latest syndication
South Australian Government Financing Authority (SAFA) executed the largest deal seen in the Australian market in nearly two months on 4 July, printing A$1 billion (US$737.8 million) of new 10-year notes. Andrew Kennedy, Adelaide-based director, treasury services at SAFA, discusses the effect of market conditions on the transaction.
Tenor focus drives Port of Melbourne’s choice for capital market debut
The US private placement (USPP) market provided insulation from global volatility as well as the mix of tenors and volume Port of Melbourne desired for its capital markets debut, according to the issuer and its agents. With a large portion of its acquisition finance now termed out, the issuer says it has scope to consider public markets for future transactions.
Market adjustments limit June supply in Australia
Deal flow in the Australian market, particularly for domestic senior transactions, virtually ground to a halt in June. A confluence of factors contributed to the lack of supply, dealers say, including issuers having prefunded ahead of expected turbulence, relative value and geopolitical tension. But intermediaries insist the market remains open for business.