No concessions for internal or external securitisation in APRA's latest NSFR release
The Australian Prudential Regulation Authority (APRA) released its latest discussion paper on the local interpretation of the net stable-funding ratio (NSFR) for banks on March 31. The paper includes proposed treatments for a raft of assets and liabilities, with particular focus on – but no sign of concessions for – internally and externally securitised assets.
Exclusive credit-investor insights: managing the downgrade
The downgrade of a clutch of Australian dollar corporate bond issuers from investment grade into high-yield territory has brought the issue of mandate restrictions back onto the agenda. With limited capacity for high-yield bonds in the domestic institutional space, local asset managers describe the challenges caused when bonds bought at investment-grade level fall below triple-B status.
Post-deal insights: Patience pays off for AusNet as it taps a second market for its hybrid need
AusNet Services (AusNet) says its ability to print US$375 million of 2071 non-call 5.5-year Reg S hybrid notes came as improving offshore markets offered some clarity around fair pricing of hybrid instruments. The deal's lead managers insist a more positive environment for credit and risk should support ongoing activity, even as markets continue to be characterised by fickle execution windows.
Post-deal insights: Australian market continues to work for TD Bank
Issuer and lead managers on Toronto Dominion Bank (TD Bank)'s record-breaking Kangaroo transaction say the deal opens the way to additional Kangaroo market supply from Canadian banks and global financial institutions (FIs) more generally. TD Bank itself hopes to continue to be a regular issuer going forward.
Securitisation market working through short- and medium-term challenges
Securitisation market participants say the slow start to the issuance year in their sector comes as no surprise given wider market conditions. They also acknowledge ongoing demand challenges that could shave volume off deals from the largest issuers in particular – but remain confident that deals will come through, and be available to a diverse range of issuers.