Post-deal insights: investors bring TCV to green-bond arena, but more deals may follow
The first Australian semi-government issuer to bring a green bond to market says the genesis of its transaction lay in investor demand for the product. Treasury Corporation of Victoria (TCV) has a significant stock of certified green assets and is willing to return to the green-bond market – despite its relatively small term-funding programme and commitment to supporting benchmark liquidity.
Post-deal insights: Australian banks' return suggests liquidity conditions remain robust
Following the first real test of Australian-origin credit appeal locally and offshore since the UK voted to leave the European Union (EU) on June 23, bank treasury representatives say they see little or no Brexit-induced effect on funding markets. International investors remain comfortable with Australian credit, they add.
Brexit: a shock, but possibly not a crisis for global markets
The surprise referendum result in the UK has left market participants scrambling to gauge the likely impact on global markets – including in Australasia. Most seem to view Brexit as a "shock not a crisis", assuming isolationist contagion does not spread throughout the Eurozone and beyond.
S&P's Australian sovereign outlook revision threatens major banks' double-A status [UPDATED]
Australia's major banks are the latest issuers to suffer collateral damage from S&P Global Ratings (S&P)'s decision to revise its outlook on the Australian sovereign's triple-A rating to negative. S&P placed negative outlooks on the big four's AA- ratings on July 7, following similar outlook changes for the sovereign and a raft of semi-government and government-sector borrowers.
Australian majors could have A$120-150 billion of TLAC to find, NAB analyst report suggests
A research report published by National Australia Bank (NAB)'s global markets credit research team on June 16 estimates that, in aggregate, the big-four Australian banks may need to raise more than A$120 billion (US$88.7 billion) of total loss-absorbing capacity (TLAC) by the regime's implementation date. However, even factoring in two key expected forthcoming regulatory changes to the estimate, the report suggests that the task – while substantial – should be manageable for the majors.