Loan evolution paves the way for Prospa to deliver closed-pool ABS with shorter WAL
Prospa’s ability to lengthen the lifespan of its loan originations allowed the issuer to adopt a more traditional closed-pool deal structure in its return to the securitisation market. Offering shorter weighted average life securities was positively received by domestic investors, the issuer reveals – but it adds that there is more work to be done to educate offshore accounts about Australian SME credit.
Nestlé’s leads hope it could be the lure for more Kangaroo corporates
Deal sources say Nestlé’s jumbo debut Kangaroo transaction is a further show of confidence for the Australian dollar market. They hope it could spur other international corporate names to consider Australian dollar funding after a three-year drought since the last Kangaroo corporate issuance of similar size.
A European flavour to burgeoning private credit sector
The emergence of private credit as an asset class in Australia began in the ultra-low rates environment ahead of and during the pandemic, but has only grown as overall interest in fixed income has grown in more recent times. The domestic market is still maturing and the focus of global interest is typically the US, but there are also private credit opportunities in Europe.
Asian demand for Australian credit likely to remain high
The Asian bid has been a major talking point in the Australian credit market in early 2024 and, while technical factors have provided a strong tailwind, market participants believe the outlook is positive for the medium term at least. Finding ongoing sources of bank and corporate supply may be a bigger concern.
SAFA reflects on 100 per cent sustainable debt plans in wake of debut issuance
South Australian Government Financing Authority has been working on plans to map its whole debt book – and thus pave the way for a fully sustainability-labelled issuance programme – for a matter of years. In the wake of its debut labelled transaction, Peter King, head of financial markets and client services at the state issuer, talks to KangaNews about the reception and the importance of a programme that is unique in Australia.