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 Australian property market is a constant headline producer, particularly when prices are in decline. The recent cooling of house prices, however, has – so far – been a desired outcome for regulators and market participants who were seeking a soft landing after an unprecedented period of growth.
The eighth KangaNews-Westpac Corporate Debt Summit, held in Sydney on 12 September, drew a record crowd once again. As well as providing insights from the heart of the banking, sustainability and economics sectors, there were in-depth discussions around the role of the Australian credit market relative to its global peers and the new open-banking regime, as well as the annual C-suite update.
The fifth annual iteration of the KangaNews-Moody’s Investors Service (Moody’s) Corporate Borrowers Intentions Survey shows a small but significant increase in expectations for debt-capital-markets activity in the year ahead. This comes despite respondents taking a more pessimistic view of prevailing credit conditions.
The KangaNews New Zealand Debt Capital Markets Summit 2018, held in Auckland on 8 August, attracted the largest delegate representation ever for an event that has run annually since 2013. Discussion captured all the talking points in the New Zealand capital market including macroeconomics, the business environment and trade updates, as well as spotlights on infrastructure, technology, bank securitisation and investing with impact.
The Australian base rate has been on a trend incline throughout 2018, driving up banks’ cost of funds and some lending rates. Debate is raging about whether the trend is structural or cyclical, for how long it will last, how far it could go and the wider consequences.