Every year, KangaNews and RBC Capital Markets host the heads of funding from Australia’s big-four banks to discuss market conditions and the outlook for their sector. In 2020, the COVID-19 crisis has reshaped the landscape completely – most notably by almost completely eliminating the majors’ funding gap and thus removing them from public senior debt markets since the first months of the year.
On 4 December, Pepper Group began taking indications of interest for its auto and equipment asset-backed securities (ABS) deal, Pepper Sparkz 3. Capped volume for the transaction is A$615.9 million (US$458.1 million) and is expected to launch in the week beginning 7 December. Westpac Institutional Bank is arranger and joint lead manager alongside BofA Securities, MUFG Securities, National Australia Bank, RBC Capital Markets and Societe Generale.
On 26 November, Pepper Group revealed plans to meet investors ahead of a potential auto and equipment asset-backed securities (ABS) deal, Pepper SPARKZ Trust 3. BofA Securities, MUFG Securities, National Australia Bank, RBC Capital Markets, Societe Generale and Westpac Institutional Bank will arrange investor meetings.
On 23 November, Kommunalbanken Norway (KBN) (AAA/Aaa) launched a new A$250 million (US$183 million) minimum, 5.5-year, Kangaroo transaction. The forthcoming deal is being marketed at 25 basis points area over semi-quarterly swap, equivalent to 27.7 basis points area over Australian Commonwealth government bond.
On 12 November, just a week after perhaps the most contentious and controversial election in US history, KangaNews convened a panel of US-based market participants to discuss the fallout as part of the KangaNews Debt Capital Markets Summit 2020 webinar series. The conversation covered the impact of a divided government, monetary and fiscal policy, and the US’s place on the world stage.