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Lack of senior-unsecured supply from the major banks continues to represent a major hole in the Australian debt market, according to KangaNews issuance data from the first half of 2021. Meanwhile, sovereign and semi-government issuance has receded from the heights of last year.
Inflation speculation has intensified in 2021 as the world slowly emerges from the COVID-19 pandemic. Even so, investors in the world’s major inflation-linked-bond markets are in a holding pattern amid a mid-year rates rally based on renewed economic scepticism. The big question for markets is what might break the deadlock on inflation outlook.
Australia’s move toward a net-zero emissions future is accelerating, even in the absence of decisive federal policy leadership. Participants at the KangaNews Sustainable Debt Summit 2021 virtual event in June discussed the opportunities of a net-zero future and the risks of being left behind.
Momentum behind the private-debt market is growing as investors widen their search for higher-yielding assets within credit allocations. Specialists in Australia say developments are leading their sector closer to the robust markets developed in the US and Europe after the financial crisis, including more transparent valuation and liquidity.
In June, Firstmac issued Australia’s first solely green residential mortgage-backed securities deal. The local market has seen consistent though small-scale green securitisation of nonmortgage assets. Market participants are now somewhat optimistic about more supply in the mortgage space.
Deal activity in the fourth week of August was highlighted by Australian Office of Financial Management's new Treasury-indexed bond via syndication. Securitisation issuance continued its record run.
