Australian Office of Financial Management
On 22 October, KangaNews hosted the latest in the KangaNews Debt Capital Markets Summit 2020 webinar series. The session had a rates-market flavour, including a discussion between some of Australia’s leading market participants about how massively increased sovereign issuance, central-bank intervention and a raft of new dynamics will shape their sector.
Australian fund managers, strategists and traders remain sceptical of the apparent rationale behind a bond sell-off that has seen local long-end yield spike after creeping higher in previous months. The price move appears to reflect greater inflation expectations and an interest rate hike before the Reserve Bank Australia’s forecast of 2024, but there is some evidence that it is not being backed by substantial repositioning activity.
Nearly a year since the Australian Office of Financial Management (AOFM) deployed its first investment from the Australian Business Securitisation Fund (AOFM), the government debt-management agency is seeking to reinvigorate its mandate to develop the SME financing market. COVID-19 forced a focus on emergency liquidity mechanisms and put the ABSF on hold, but the AOFM believes the experience may now allow it to fast-track its longer-term ABSF aims.
On 15 January, Australian Office of Financial Management (AOFM) gave an update on its 2020/21 issuance programme. Its total requirement of A$230 billion (US$178.7 billion) and amount issued to date of A$153.5 billion are unchanged from its last update on 18 December.
On 18 December, Australian Office of Financial Management (AOFM) (AAA/Aaa/AAA) revised down its planned issuance for the 2020/21 financial year to A$230 billion (US$175.4 billion) from A$240 billion, following the release of the federal government’s mid-year economic and fiscal outlook one day earlier.
HIGH-GRADE ISSUERS YEARBOOK 2020
The ultimate guide to Australian and New Zealand government-sector borrowers.