Reserve Bank of Australia
Australian Securitisation 2019 took place in Sydney on 18 and 19 November with market-leading commentary on the evolution of the securitisation market, including collateral, lending regulation and benchmark reforms. The Australian securitisation market is poised to enter the next decade in robust shape, reflected by a record registration for and attendance at the Australian Securitisation Forum’s annual conference.
Commonwealth Bank of Australia (CommBank) believes it achieved all the objectives it set for its issuance of the first residential mortgage-backed securities (RMBS) deal to use the Australian overnight index average (AONIA) reference rate. The bank wanted to respond to regulatory guidance from the Reserve Bank of Australia (RBA) with a broadly distributed benchmark transaction that also provided capital relief.
End users can no longer ignore the domestic and international process of reforming benchmark rates, according to speakers at the International Swaps and Derivatives Association (ISDA)’s annual Australian conference in Sydney. The local market is less than halfway through its own transition and the main concern is lack of engagement from many issuers and investors.
The Bank for International Settlements (BIS)’s newly-established green-bond fund aims to help central banks incorporate environmental sustainability objectives in the management of their reserves. Antipodean central banks are increasingly sounding alarm on the risks posed by climate change, but so far only the Reserve Bank of New Zealand (RBNZ) has invested in the fund.
Despite increasing speculation about further stimulus in Australia as the cash rate continues to fall, most analysts believe it is unlikely the Reserve Bank of Australia (RBA) will employ QE this economic cycle. However, this has not stopped the spectre of QE from looming on the horizon as rates get ever closer to the zero lower bound (ZLB).
Reserve Bank of Australia (RBA) assistant governor, Christopher Kent, says adjustments to the committed liquidity facility (CLF) will reduce banks’ need for supplementary liquidity while ensuring strong incentives to manage liquidity risk appropriately remain in place.