Commonwealth Bank of Australia
The impending likely demise of global interbank offered rates has sparked many questions for the Australian market. Its local credit reference rate appears to be relatively robust – though its status is not unimpeachable – while the importance of cross-border issuance to Australian borrowers requires engagement with international IBOR developments. KangaNews and Commonwealth Bank of Australia brought together key market participants in late January to discuss the way forward.
In the next step in the evolution of applying blockchain technology to debt capital markets, it is now possible to trade World Bank’s Bond-i on the blockchain platform. Participants say interest in the platform has only continued to accelerate since the deal was introduced in August 2018, and that further development is still ongoing.
On 22 May, Sumitomo Mitsui Banking Corporation Sydney Branch (SMBC Sydney) (A/A1/A) launched a new, two-year, benchmark senior-unsecured domestic deal. The forthcoming transaction has indicative price guidance of 62 basis points area over three-month bank bills.
On 21 May, ME Bank began taking indications of interest for its residential mortgage-backed securities (RMBS) deal, SMHL Series Securitisation Fund 2019-1 (SMHL 2019-1). The transaction has indicative total volume of A$750 million (US$516 million) with the potential to upsize, and is expected to launch in the week commencing 27 May.