Nonbanks: the sector summit
In September, KangaNews hosted representatives of Australia’s most significant nonbank lenders at the first-ever sector roundtable discussion. On the agenda were funding markets and investor relations, the outlook for the Australian housing market and regulatory oversight of the sector.
Nonbanks’ local buy-in
Support from debt investors is a critical component of Australian nonbank lenders’ business models, and the major nonbanks have investor relations high on their priority lists. These issuers have been able to fund their businesses through the credit cycle, and domestic fund managers say they see the appeal of the nonbank value proposition – with appropriately detailed credit work.
Australia green-bond evolution paves way for KfW’s return
The outperformance of KfW Bankengruppe (KfW)’s Kangaroo green bond in the secondary market relative to its vanilla bonds during 2017 has prompted two taps of this line in less than three months, the issuer says. KfW also discusses the opportunity set for the agency in the Kangaroo green-bond market.
Stability leads to UAE banks’ Kangaroo return
Having been absent for two-and-a-half years, a brace of United Arab Emirates (UAE)-origin issuers returned to the Kangaroo market in recent weeks. Deal sources suggest the return of price stability to the oil market in recent has proved to be a catalyst for a reopened Kangaroo market.
Australian nonbanks confident but watchful on APRA powers
Speaking at a roundtable hosted by KangaNews, representatives of Australia’s largest nonbank lenders expressed a degree of confidence that the regulatory impost hanging over the sector may not fundamentally damage their business models. But they are watchful and wary of what they see as the potential for regulatory overreach.