News
In a major overhaul of a longstanding and significant poll, KangaNews is pleased to reveal the results of its Fixed-Income Research Poll. For 13 years, the survey has asked institutional investors in the Australian fixed-income market to rank the research they receive across a range of sectors. Based on investor demand, the poll has now been revamped to also include investor views on the service they receive in secondary markets.
Treasury Corporation of Victoria made early inroads into its 2022/23 funding task with its largest-ever fixed-rate syndication, that saw bonds placed across the issuer’s full gamut of investors. Robust turnover in the state debt management agency’s bonds in the secondary market highlights semi-government sector development and adds to the case for investors to participate, the issuer says.
Columbus Capital was active on 22 June, with the pricing of two separate residential mortgage-backed securities trades on the same day. The issuer says the timing was coincidental and did not interfere with either trade’s reception.
The Green, Social, Sustainability and Sustainability-Linked Bond Principles announced revisions on 22 June after its annual general meeting. The two top deliveries for 2023 are an update to the Climate Transition Finance Handbook and modifications to the Sustainability-Linked Bond Principles to integrate sovereign issuers.
Bank of New Zealand returned to the euro covered bond market for the first time in a year on 20 June, printing a €750 million (US$824.4 million) 5.5-year covered bond. Deal sources laud the transaction’s outcome, despite competing supply and a busy issuance window, largely helped by the measured execution process undertaken by issuer and leads.
HSBC Australia achieved robust demand and record pricing for its latest residential mortgage-backed securities deal. The issuer says new features in the structure of the deal contributed to its success.
Westpac Banking Corporation’s latest Australian dollar transaction helped it to meet the group’s tier-two issuance target for the remainder of its 2023 financial year, having outlined an expectation of A$2-3 billion during its half-year results in May. The borrower says record final volume was not the base case expectation but not a complete surprise, either, given the coupon on offer.
NRW.BANK has opened a new social bond in the Kangaroo market. The issuer had hoped for stronger domestic investor support for the labelled bond, after undertaking two sets of investor meetings in Australia since September last year. Central banks were the main buyers – attracted to the three-year maturity, according to the issuer.
World Bank’s return to the Kauri market was the largest volume print in the sector since the Reserve Bank of New Zealand released the second consultation paper for its liquidity policy review in February – a development that has cast doubt over the Kauri market’s future prospects. Distribution statistics show bank books supporting the World Bank deal but accompanied by a greater than usual participation from other investors.
New South Wales Treasury Corporation navigated event risk and competing supply to print its latest dual-tranche deal. The transaction included the issuer’s longest-dated floating rate note tranche, which it highlights as a supportive factor for robust investor demand.
Strong and early interest from Asian investors in Endeavour Energy’s latest domestic deal was a vital part of the bookbuild, even though domestic investors ultimately drove demand. Deal sources say the transaction’s success had its foundations in a positive indications of interest process.
A challenging environment for nonbank lenders as the likelihood of a soft landing in the Australian economy recedes may mean less securitisation supply, local market participants suggested at an investor briefing in London. On the other hand, bank issuance, nonmortgage securitisation, collateral quality and increasingly positive demand conditions should support the sector through the next phase.