Post-deal insights: Tier-two supply in focus as Westpac finds a new issuance angle
In the wake of Westpac Banking Corporation (Westpac)'s first-ever SEC-registered tier-two transaction, the issuer says as the first callable Basel III-compliant tier-two trade issued in the US market by an Australian bank, this will likely allow other Australian banks to follow. It will also enable them to issue in an efficient manner.
Post-deal insights: SAFA uses innovation to find new investors for its latest syndication
In the wake of its latest domestic syndication, South Australian Government Financing Authority (SAFA) (AA/Aa1) says the unconventional lead-manager arrangement it selected fulfilled an objective to stimulate a broader level of market conversation. According to the issuer, this method increased SAFA's exposure to potential new investors.
Post-deal insights: Thinktank casts the net wider in its second CMBS
Following its return to the Australian commercial mortgage-backed securities (CMBS) market, Thinktank Commercial Property Finance (Thinktank) says expanding its investor reach beyond the scope of its first CMBS transaction proved fruitful. While the investor pool for CMBS is currently somewhat contained, Thinktank is hopeful comprehensive investor-relations work will further engage the wider securitisation community.
Some concessions on securitisation exposures headline APRA's final APS 120 draft
The Australian Prudential Regulation Authority (APRA) released the final draft version of the new prudential standard APS 120 – the regulatory framework for securitisation – on November 10, following industry consultation. Changes to the last draft are limited, and focus mainly on adding flexibility at the margin on capital deductions, funding-only securitisations and warehouse capital relief.
Finding assets main challenge from growing Japanese hunger for long-dated credit
Japanese life insurers' demand for offshore bonds continues to grow, in particular these investors' increasing focus on credit product. An ANZ research note published on October 31 provides insights into the Japanese life sector's investment intentions – and the report's author says finding assets to fulfil this demand could be the biggest challenge for the Australian market.