Global reach and attractive funding cost underscore AMP Bank’s RMBS return
Australia’s securitisation market continues to generate well bid and competitively priced transactions, with AMP Bank printing the market’s latest upsized and oversubscribed deal. The issuer highlights robust international demand throughout the capital structure as well as the pricing benefit achieved from the deal’s capital-relief structure.
Minimum supply commitment included in NZDMO funding update
For the first time in the current cycle, the New Zealand Debt Management Office (NZDMO) includes a government commitment to maintaining a minimum supply of New Zealand Government bonds (NZGBs) on issue in its latest funding update. The update, which was released on 25 May following the New Zealand budget, says the government intends to maintain minimum NZGB supply of “not less than 20 percent of GDP over time”.
Kangaroo SSA mid-curve flickers on positive demand notes
Mid-curve Kangaroo market pricing has swung back into a range that some global supranational, sovereign and agency (SSA) borrowers consider to be an acceptable premium for diversification purposes, market participants say. A recent-year issuance decline shows signs of having bottomed out – though it is yet to rebound – and market users say demand for the SSA product is steadily broadening.
CommBank mandates Australia’s first major-bank RMBS of 2017
Commonwealth Bank of Australia (CommBank) revealed on 25 May that it is engaging with investors on a potential self-led residential mortgage-backed securities (RMBS) transaction from its Medallion programme. A forthcoming deal will be for funding and capital-relief purposes.
Full disclosure for Australia’s capital-markets issuance regime
The Australian market moved a step closer to a formalised best practice for deal disclosure on 15 May when the Australian Financial Markets Association (AFMA)’s credit product committee released a market notice recommending guidelines to be followed by market participants. Dealers tell KangaNews market practice has substantially coalesced around the guidelines though with no enforcement power it remains to be seen whether they will be followed universally.