S&P Global Ratings (S&P) stayed its hand on Australia's sovereign rating following the release of the Commonwealth's mid-year economic and fiscal outlook (MYEFO) on December 19. The rating agency maintains the negative outlook on Australia's triple-A rating, while both Moody's Investors Service (Moody's) and Fitch Ratings (Fitch) are retaining stable triple-A ratings on the Australia sovereign.
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.
On 6 May, expected ratings were assigned by S&P Global Ratings and Fitch Ratings to Firstmac's potential residential mortgage-backed securities (RMBS) deal, Firstmac Mortgage Funding Trust No. 4 Series 2-2019 (Firstmac Series 2-2019). The deal has indicative total volume of A$500 million (US$348.8 million). ANZ, J.P. Morgan, National Australia Bank, Standard Chartered Bank, United Overseas Bank and Westpac Institutional Bank were mandated for the potential deal on 24 April.
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.
The first-ever KangaNews Mutual Sector Wholesale Funding Seminar took place in Sydney on 13 February 2019. As well as an in-depth exploration of the present and future of mutual funding strategy, the seminar covered a range of themes relevant to the sector including securitisation, the Australian housing market, investor relations and the forthcoming, federal-government backed, Australian Business Securitisation Fund.
The final form of Australia’s total loss-absorbing capacity (TLAC) regime is as yet unknown. One thing that is beyond doubt, however, is that the domestic investor base will play a meaningful role in funding whatever requirement the banks end up with. The KangaNews Debt Capital Markets Summit 2019 concluded with four key local players sharing views on the prospects.