Favourable basis not enough to maintain Kangaroo flood
Despite a five-year basis swap in historically wide territory issuance in the Kangaroo market has slowed to a near standstill, with the 2019 maturity issued by KfW Bankengruppe (KFW) (AAA/Aaa/AAA) on November 26 being the first primary activity in the Kangaroo space since November 17. And while the current basis is favourable for offshore issuers, intermediaries say there are several factors – including continued volatility in the basis itself – constraining further activity.
KfW's new 2019 Kangaroo nets A$300 million in quieter market [UPDATED]
Following a busy start to November, the new 2019 maturity bond priced on November 26 by KfW Bankengruppe (KfW) (AAA/Aaa/AAA) was the first Kangaroo transaction for over a week. And while October and November are now the busiest Kangaroo issuance months since early 2007 market sources say the window for potential issuance is narrowing – despite a favourable basis swap for offshore issuers.Third corporate deal priced in two days as VWFS upsizes 2012
Capping a flurry of activity in the Australian corporate bond market, Volkswagen Financial Services Australia (VWFS) (A-/A3) priced a A$125 million (US$115.2 million) transaction on November 24 – the third corporate deal in two days. The three-year, fixed rate bond deal is Volkswagen's second of 2009 and priced at a margin of 200 basis points over swap.New S&P risk capital framework challenges role of hybrids
A comparison of 45 major global banks under Standard & Poor's (S&P)'s new risk-adjusted capital framework (RACF), published on November 23, ascribes to most – including the three Australian firms analysed – RAC numbers significantly lower than their published tier one ratios. S&P says the new assessment "illustrates our existing opinion that capital remains a neutral to negative rating factor for the majority of banks in our sample".