APRA believes global regulation may have peaked, but Australia will not step back
Wayne Byres, chairman of the Australian Prudential Regulation Authority (APRA), expressed in a 28 June speech his view that the final stages of Basel III planning and implementation “will largely mark the end of the cycle” for bank regulation. However, he also suggested that he does not want to see the regulatory work of the past decade unwound to serve any country’s domestic considerations.
Mezzanine funding model evolves as zipMoney reaches 400 investors
The issuer and arranger of an innovative mezzanine warehouse-funding transaction say the deal demonstrates the burgeoning scale of demand for higher-yielding securitisation notes. The A$40 million (US$30.2 million), class B tranche of zipMoney’s first securitisation warehouse facility was placed with more than 400 accounts according to the transaction’s arranger, FIIG Securities (FIIG).
Moody’s drops Australian majors to Aa3 and their New Zealand subsidiaries to single-A
Moody’s Investors Service (Moody’s) lowered its macro profile for Australia on 19 June, a move that triggered a one-notch downgrade of 12 local banks including the four majors. The downgrade takes the Australian majors to Aa3 – a rating level equivalent to that afforded the big four by the other two largest rating agencies – and drops their New Zealand subsidiaries outside the double-A band, to A1.
More semi-government issuance growth as TCorp task rebounds
New South Wales Treasury Corporation (TCorp) joined its counterpart in Victoria in announcing a return to net new bond issuance for the coming year as the state exits its phase of asset transactions and consequent low or negative funding needs. On 21 June, TCorp disclosed an expected issuance task of A$6.4 billion (US$4.9 billion) for 2017/18 and further growth in the following years.
NZDMO looks to the future with minimum bond supply commitment
The New Zealand Debt Management Office (NZDMO) says feedback from investors led it to initiate discussion within New Zealand government circles about committing to a minimum supply of sovereign debt on issue. New Zealand is approaching a forecast period of strong budget performance, and by maintaining bond supply the NZDMO hopes to support confidence in an actively traded market.