Asian Development Bank
The Kauri market has been supporting significantly sized deals in recent weeks, illustrated by Asian Development Bank (ADB)’s most recent foray into the market. Pricing and demand fundamentals are currently coaxing supply from offshore issuers, with domestic buyers the primary drivers of demand.
As high-grade bonds have rallied globally in response to the COVID-19 crisis, opportunities have emerged in the short end of the Australian dollar basis swap curve.
Asian Development Bank (ADB)’s 15 January deal is a sign the Kauri market has returned with a willingness to price in line with global benchmarks, deal sources say.