On July 24, Inter-American Development Bank (IADB) (AAA/Aaa/AAA) priced a new 5.5-year Kangaroo transaction. This is the 14th time the borrower has visited the Kangaroo market in 2014. IADB most recently issued on June 20 with a A$250 million (US$235.7 million) tap to its October 2018 Kangaroo, priced at 46 basis points over Australian government bond.

Price tightening in the securitisation market combined with consistent supply drew ME Bank back to the domestic market with its first residential mortgage-backed securities (RMBS) deal of 2014, the borrower says. By its July 23 pricing, the four-tranche deal, SMHL Series Securitisation Fund 2014-1, was upsized to A$1.45 billion (US$1.37 billion) from A$500 million at launch.

The Reserve Bank of New Zealand (RBNZ) lifted the official cash rate (OCR) by 25 basis points to 3.5 per cent, on July 24. This is the central bank’s fourth consecutive rate hike but analysts note intent to pause –albeit temporarily – from here on in.

ME Bank priced SMHL Series Securitisation Fund 2014-1 on July 23. The transaction has a total volume of A$1.45 billion across four tranches.

When Corporación Andina de Fomento (CAF) (AA-/Aa3/AA-) became the first-ever Latin American-origin issuer to tap the Kangaroo market in August last year, intermediaries were doubtful that a flurry of similar deals would quickly follow. However, KangaNews understands that the pipeline is filling with three more issuers in varying stages of readying deals.