While markets have remained liquid and tradeable throughout 2018, there can be little doubt that the period of almost unprecedented beneficial funding conditions that pervaded up to the end of 2017 has passed. At their annual global-markets roundtable in London in June, ANZ and KangaNews heard the latest thinking from key issuer and investor players.
The Australian major bank influx into tier-two issuance continued on 19 July as ANZ Banking Group (ANZ) printed a domestic transaction. The issuer says it was strategically important to execute a sizeable and successful Australian dollar deal shortly after the Australian Prudential Regulation Authority (APRA)’s total loss-absorbing capacity (TLAC) announcement, and that domestic investor participation was particularly pleasing.
On 23 July, People's Choice Credit Union (People's Choice) launched its residential mortgage-backed securities (RMBS) deal, Light Trust 2019-1. Indicative total volume for the transaction, which is expected to price on or before 26 July, is A$500 million (US$351.6 million) with the potential to increase to A$650 million. National Australia Bank is arranger, and is also joint lead manager alongside ANZ, Macquarie Bank and Westpac Institutional Bank.
On 23 July, Suncorp-Metway (Suncorp) (A+/A1/A+) launched a new five-year, Australian dollar denominated benchmark deal, offered in either or both fixed- and floating-rate formats. Indicative price guidance for the transaction, which is expected to price on day of launch, is 80 basis points area over swap benchmarks. ANZ, Commonwealth Bank of Australia, National Australia Bank and Westpac Institutional Bank are leading.