Mid-curve Kangaroo market pricing has swung back into a range that some global supranational, sovereign and agency (SSA) borrowers consider to be an acceptable premium for diversification purposes, market participants say. A recent-year issuance decline shows signs of having bottomed out – though it is yet to rebound – and market users say demand for the SSA product is steadily broadening.
On 20 February, AMP Bank revealed plans to engage investors regarding a potential residential mortgage-backed securities (RMBS) deal from its Progress programme. Commonwealth Bank of Australia, Deutsche Bank, Macquarie Bank, MUFG Securities, National Australia Bank and Standard Chartered Bank have been mandated as lead managers.
Liberty Financial (Liberty) (BBB- by S&P) launched a four-year, Australian dollar denominated, benchmark, floating-rate note (FRN) transaction on 17 February. Indicative price guidance for the forthcoming deal, which is expected to price on the day after launch, is 240-245 basis points area over three-month bank bills. Deutsche Bank, National Australia Bank and Westpac Institutional Bank are leading.
Western Australian Treasury Corporation (WATC)’s latest transaction shows that banks’ demand for semi-government floating-rate note (FRN) issuance is still evident as they work to fill their high-quality liquid asset (HQLA) requirements.