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 18 September, Athene Global Funding mandated BofA Securities, Deutsche Bank and RBC Capital Markets for a potential five-year, Australian dollar denominated, FA-backed, benchmark deal. A group investor call is scheduled for 21 September. The deal is expected to be rated A by S&P Global Ratings and A by Fitch Ratings.
KangaNews hosted an exclusive briefing with the Reserve Bank of Australia (RBA) as part of the KangaNews Debt Capital Markets Summit 2020 online agenda. The reserve bank updated on the market-intervention measures it has rolled out since the start of the COVID-19 crisis while market participants discussed the RBA’s involvement from a range of perspectives.
On 4 August, South Australian Government Financing Authority (SAFA) (AA+/Aa1) launched a syndicated increase to its May 2032 line. The forthcoming deal is being marketed at 80-82 basis points area over 10-year futures contract, equivalent to 70.4-72.4 basis points area over Australian Commonwealth government bond.
Pricing in the Australian dollar supranational, sovereign and agency (SSA) market remains dislocated, intermediaries say, based on lack of alignment between domestic investor and offshore borrower pricing expectations. A number of factors are at play, not least among them the record support SSA borrowers are receiving in global markets.