Moody's Investors Service
The latest instalment of the KangaNews-Moody’s Investors Service (Moody’s) Corporate Borrowers’ Intentions Survey – published annually since 2014 – maintains a longstanding trend of only gradual shifts in corporate debt policy. At the margin, Australasian corporates appear to expect more capital-markets activity but there is no sign of a rush to credit-funded investment.
The KangaNews Sustainable Debt Summit 2019 took place in Sydney on 18 March with a record number of delegates in attendance. The tone of discussion at the event has evolved in recent years, with the emphasis now much more clearly on delivery – the ‘how’ and ‘what’ as opposed to the ‘why’ of sustainable finance.
While Australia’s major banks took advantage of record liquidity and competitive pricing in their home market in the first quarter of 2019, European bank issuance enjoyed an upswing of its own. European market sources say the positive environment has been supported by an economic backdrop that is neither as bad as it has been nor as good as it could be.
The Australian Prudential Regulation Authority (APRA) has hinted that its plan for the forthcoming Australian loss-absorbing capacity (ALAC) regime to be funded predominantly via tier-two instruments may not be set in stone. It remains unclear what shape the final regime will take, but more options now appear to be on the table than first thought.
Australian elections, markets and politics in Europe, bank funding, the evolution of the domestic corporate market and the future of deal execution were all on the agenda at the KangaNews Debt Capital Markets Summit 2019. Industry leaders shared their insights into all the key issues of the day.
Analysts tell KangaNews the trigger of a stepdown provision in Suncorp Group (Suncorp)’s Apollo 2010-1 residential mortgage-backed securities (RMBS) trust is not a sign of systemic problems with the asset class, despite rising arrears in the loan pool. In fact, they say the function is working as it should – to protect senior noteholders.