Market insights: Mid-curve SSA Kangaroo flurry helps maintain market consistency
Issuers and intermediaries say demand and liquidity dynamics have facilitated a pickup in benchmark-size supranational, sovereign and agency (SSA) mid-curve activity during July and August. Such deal flow is positive given market sentiment around smaller deal sizes and comes as investors place notably greater importance on liquidity in bond lines.
Post-deal insights: Resimac and BEN encouraged by real money participation as RMBS issuance resumes
In the wake of two of the largest Australian residential mortgage-backed securities (RMBS) transactions of this year, both issuers attribute their success to post-Brexit market conditions and a dearth of high-quality securitisation supply in Australia. Notably, both transactions saw higher participation from real-money accounts than anticipated.
Post-deal insights: Westpac's new tier-two angle offers efficiencies for issuer and investors
Westpac Banking Corporation (Westpac)'s decision to issue the first Kauri Basel-III compliant bank tier-two transaction was driven by a desire for further diversification of tier-two product, the issuer tells KangaNews. The fact that the transaction was issued out of the Australian head office provided a point of difference to recent Basel-III compliant tier-two trades in New Zealand as well as an additional layer of comfort – and was a key attraction for investors, lead managers add.
CommBank pushes leading capital position despite ROE hit
Commonwealth Bank of Australia (CommBank) used its August 10 annual results announcement to trumpet its leading capital position among the Australian big four banks. The bulk of its year-on-year common equity tier-one (CET1) growth came from a major equity raising in the first half, and the overall climb to 10.6 per cent CET1 has come with a significant cost in return on equity (ROE), though.
Post-deal insights: TFS's US high-yield return attracts a broader bid as conditions rebound
The issuer of the latest Australian-origin high-yield bond transaction in the US dollar market highlights a developing Australian bid as a notable element of its return to issuance. TFS Corporation (TFS) says it hopes the complementary local bid may signal the potential for a domestic high-yield option to emerge, but it also notes the ongoing dominance and supportive nature of US-based investors.