Reserve Bank of Australia
While Australia is not facing the same compulsion as other global markets to drop its credit reference rate – in this case the bank-bill swap rate (BBSW) – there is still growing reason for market participants to understand, and start using, alternative reference rates (ARRs). Commonwealth Bank of Australia (CBA) took a leadership position in 2019 by pricing a securitisation deal linked to Australian overnight index average (AONIA). The bank convened a roundtable with KangaNews to discuss the next phase of evolution.
KangaNews hosted an exclusive briefing with the Reserve Bank of Australia (RBA) as part of the KangaNews Debt Capital Markets Summit 2020 online agenda. The reserve bank updated on the market-intervention measures it has rolled out since the start of the COVID-19 crisis while market participants discussed the RBA’s involvement from a range of perspectives.
The Reserve Bank of Australia (RBA) announced in its September monetary-policy decision further support for Australian authorised deposit-taking institutions (ADIs) through an expansion and extension of the term funding facility (TFF). The measures are likely to increase overall TFF lending to around A$200 billion (US$148.1 billion).
The Reserve Bank of Australia (RBA)’s first purchase of Australian Commonwealth Government Bonds (ACGBs) since May has opened a debate on the ongoing purpose of asset purchases. Three-year sovereign-bond yield is close to the RBA’s 0.25 per cent target but analysts still expect further near-term intervention.
The Reserve Bank of Australia (RBA) revealed in its monetary policy decision statement that it will buy Australian government securities (AGS) in the secondary market on 5 August – its first intervention since 6 May. The decision comes as the three-year Australian Commonwealth government bond (ACGB) yield has consistently been above the RBA’s 0.25 per cent yield target since early July.
Australian market participants generally expect only a gradual and marginal impact from the Reserve Bank of Australia (RBA)’s 5 May decision to make certain corporate bonds eligible collateral for open market operations. Even so, the criteria encompass a massive portion of Australian dollar corporate debt and took the market by surprise.