Australian dollar investor-base breadth springboards Asciano deal to a new level
If socially responsible fixed-income asset classes, and in particular green bonds, become a consistent component of the Australian debt market it seems likely that March-April 2017 will be looked back on as a landmark period. Issuance volume hit an all-time high, including a clutch of breakthrough and innovative transactions.
AOFM pares back issuance task in wake of Australian budget
The Australian Office of Financial Management (AOFM) confirmed an expected gross Treasury bond issuance task of A$80 billion (US$58.8 billion) for 2017/18 following delivery of the Australian federal budget on May 9. The gross figure includes A$34 billion of net new issuance, while a December 2016 update forecast gross and net issuance totals of A$100 billion and A$74 billion for 2016/17.
Kiwibank’s capital kerfuffle halts bond issuance in midstream
Kiwibank’s decision to pull a planned Kangaroo transaction between pricing and settlement was driven by a preliminary Reserve Bank of New Zealand (RBNZ) view that the issuer’s outstanding tier-one and tier-two securities may not comply with the local capital-adequacy regime.
Australia’s federal budget promises levy on major bank liabilities
Australia’s major banks are set to pay more for their wholesale funding – both short and long term – under a major-bank levy introduced by the 2017/18 Commonwealth budget. The government estimates the levy, which amounts to 6 basis points on all major-bank liabilities excluding additional tier-one instruments and most deposits, will raise A$6.2 billion (US$4.5 billion) over four years.
Fixed-income investor survey: focus turns inwards
The H1 2017 edition of the Fitch Ratings (Fitch)-KangaNews Fixed-Income Investor Survey has a domestic risk factor with a clear lead at the top of the agenda for Australian fund managers. The domestic buy side is increasingly concerned about the housing market, though it remains fairly confident about credit quality and spread direction.