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 24 September, Liberty Financial (Liberty) launched its residential mortgage-backed securities (RMBS) transaction, Liberty Series 2018-3. The forthcoming deal has indicative total volume of A$500 million (US$363.5 million) equivalent, including the euro denominated A1-c notes, with the potential to upsize. Pricing is expected on or before 27 September.
On 20 September, Commonwealth Bank of Australia (CommBank) launched its prime residential mortgage-backed securities (RMBS) transaction, Medallion Trust Series 2018-1 (Medallion 2018-1). The deal has indicative total volume of A$1.63 billion (US$1.2 billion) and will not grow. CommBank and Deutsche Bank are joint lead managers.
The Australian Office of Financial Management (AOFM) priced its largest treasury indexed bond (TIB) syndication since 2009 on 18 September, issuing a A$3.75 billion (US$2.7 billion) deal due February 2050. The government debt-management agency says a groundswell of demand from domestic fund managers as well as a degree of scarcity value drove the transaction.
On 19 September, Liberty Financial (Liberty) began taking indications of interest for a potential residential mortgage-backed securities (RMBS) transaction, Liberty Series 2018-3. The deal will be denominated in Australian dollars and euros, and is expected to launch in the week commencing 24 September.