Reserve Bank of New Zealand
Solid foundations for an uncertain future
The 2023 Commonwealth Bank of Australia Global Markets Conference brought international investors to Australia at a fascinating juncture for the local economy and the fixed-income asset class. While the general view remains that the central bank hiking cycle is close to played out, the market is also coming to terms with the real consequences of a higher for longer environment. Australia is not fully insulated against cold global winds but it also has reasons for optimism.
Kauris and LGFA make revised RBNZ liquid assets list
The Reserve Bank of New Zealand provided an update to its liquidity policy review on 5 December, with the banking system regulator now set to include level two liquid assets and a substantial committed liquidity facility in the forthcoming regime. The reserve bank has confirmed that securities issued by New Zealand Local Government Funding Agency and by “highly rated” Kauri borrowers will be included as level two liquid assets.
2023 year in review: New Zealand market stays on board amid choppy waters
New Zealand’s capital market faced several headwinds in 2023 but managed to navigate a course to issuance consistent with recent years. A late year regulatory update could suggest smoother sailing ahead for at least one key sector, though deal flow from 2023 provides few hints at a radical change in supply or demand patterns.
New Zealand reaches across-the-board inflection points
The KangaNews New Zealand Debt Capital Market Summit took place in Auckland in September, at a critical juncture for all of the local political, economic, market and environmental transition stories. Conversations at the conference were more wide-ranging than ever, with contributions from the political, business and markets sectors at a moment when the agenda for the coming years is being formed in real time.
Questions abound in New Zealand's liquidity policy review
The Reserve Bank of New Zealand’s liquidity policy review could fundamentally reshape the way bank liquidity books – some of the country’s most important fixed-income investors, especially in the high-grade space – allocate their money. A worst-case outcome could weaken funding opportunities, the overall health of the New Zealand capital market and even the cost of credit across the economy.
RBNZ: in-principle LPR decisions coming soon but long road ahead
New Zealand’s liquidity policy review has already had an impact on the debt market and could cause a long-lasting shakeup of issuance norms. In June, KangaNews spoke to Kate Le Quesne, director, prudential policy at the Reserve Bank of New Zealand in Wellington, to discuss the regulator’s current thinking.
HIGH-GRADE ISSUERS YEARBOOK 2023
The ultimate guide to Australian and New Zealand government-sector borrowers.
