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COVID-19 has profoundly affected how people work, especially in largely urban, professional industries like capital markets. As part of the 2021 Australian Securitisation Forum virtual conference, leaders with a range of perspectives shared their views on whether the shift to wide-scale home working will persist in the long term, how it affects equity across the workforce – particularly through a gender lens – and the value of face-to-face working.
New Zealand’s resolve to address climate change accelerated in late 2021 as the Reserve Bank of New Zealand and the External Reporting Board detailed plans to introduce stress tests and standards underpinning mandatory climate-reporting legislation. The moves follow New Zealand’s pledge at COP26 to reduce emissions by 50 per cent of 2005 levels by 2030, an update from the previous 30 per cent commitment.
Market talk is growing about a potential return to offshore issuance by Australian securitisation sponsors – including some nonmortgage asset-backed securities – if, as expected, issuance needs remain high while domestic market tailwinds abate. Australian investors note recent and expected developments in the credit market could soften demand and issuers are already starting to venture offshore once more.
Advocates touted early issuance of blockchain bonds as a sign of things to come but the market went quiet after a few transactions. Market participants say the blockchain-bond dream is alive, however, as recent central-bank moves to create digital currencies could solve several issues in the initial deals and help reboot the whole concept.
Refinitiv’s StarMine credit-risk models have been around since 2011 and the company says investors are increasingly turning to them as they grapple with risk management and alpha generation during the pandemic and now a rising interest-rate environment. The added challenges of the last two years led StarMine to review its models and performance, but its predictive powers have held during these turbulent years.
Fixed-income investors expect to be tested further in 2022 as the beginning of a rising rate cycle looms. However, credit fund managers say solid corporate earnings from the last financial year and a robust forecast economic rebound should ensure an ongoing pipeline of opportunities.
Treasury Wine Estates is aiming for gender equality in senior leadership roles and 42 per cent female representation across its business by 2025. The company included these goals in the KPIs for its first sustainability-linked loan, which completed last week – in the process becoming the first Asia-Pacific winemaker to borrow in this format.
Australasian deal flow slowed in the week ending 17 December. Highlights included South Australian Government Financing Authority's June 2025 AONIA-linked floating-rate note and GMT Bond Issuer's six-year transaction in New Zealand.