Demand strong as sun sets on old-style LT2 market

What could be the last 'old-style' lower tier two (LT2) subordinated debt transactions in the Australian market both attracted strong demand, as issuers and investors hurried to participate in transactions before the dawn of a new regulatory regime at the start of 2013. Market sources admit new subordinated securities, featuring explicit loss-absorbency and more equity-like features, are likely to be a harder sell in the institutional market.