Kanga.Trends
Australasian fixed income news from April and May 2011, including coverage of deal flow and key legislative announcements.

Feature: Appreciating the Aussie
The sky-high valuation of the Australian dollar is raising questions about elements of the fair-value model as well as a potentially explosive carry trade. While developments in the US support a strong Aussie dollar, fiscal and monetary policy shifts within the Asia Pacific region could have a bipolar effect on the currency going forward.

Feature: Fall from grace
Although the US is facing a potential downgrade to its sovereign credit rating, the revelation has not caused a seismic shock to global markets. Instead, most market participants are convinced it is merely another event in the long-term rebalancing of global reserve allocations.

Roundtable discussion: Credit fund managers: taking the pulse of the Australian buyer base
At a roundtable discussion held in mid-May and sponsored by Commonwealth Bank of Australia, representatives from 10 of Australia’s biggest fund managers reiterate their desire to see more diversity in the domestic corporate bond market.

Feature: The complete picture
It is a testament to the relative robustness of the Australian banking sector that one of the main post-crisis goals of the government is not rebuilding its shattered strength but ensuring a multitude of players can compete with the big four. However, financial institutions outside the majors remain to be convinced on the likely value of the latest legislative blueprint for promoting competition.

Kanga.Deals
Exclusive data and league tables for Australian and New Zealand market deals priced in the year to May 20.