Online articles

• Australian dollar simmers for global TLAC issuance

  There is no Australian equivalent of a total loss-absorbing capacity (TLAC) regime, and even when one is implemented it does not currently appear that it will create a new type of additional-capital security as has been the case in most global jurisdictions. This has not stopped international banks issuing TLAC-compliant senior debt denominated in Australian dollars.

• Australian dollar tier-two capacity could be set for a test

  Australia’s big-four banks could triple their issuance of tier-two instruments to meet the local equivalent of a total loss-absorbing capacity (TLAC) regime, according to the Australian Prudential Regulation Authority (APRA).

• Bank sustainability market in Australian dollars remains a domestic affair

  So far, the only banks to have issued sustainability-themed bonds denominated in Australian dollars have been domestic institutions – just one of the reasons why deal volume has yet to catch fire. One positive sign is the conduciveness of the Australian dollar market for high-grade issuers, including to global supranational, sovereign and agency names.

• Canadian banks’ longstanding Australian market connection continues

  Canadian banks have been a reliable source of supply to the Australian dollar market since the financial crisis, initially focused mainly on covered bonds but increasingly in recent years in senior-unsecured format. The Australian market has proved fruitful for Canadian issuers both via local branches and in Kangaroo format.

• Financial institution issuer profiles

  Key data and information on 23 global bank issuers active in the Australian dollar market. The issuer section includes funding strategy information as well as corporate debt data on profiled borrowers.

• Global perspectives on bank funding

  The international bank debt-issuance market is constantly evolving, with the emergence of total loss-absorbing capacity (TLAC) and renewed volatility among 2018’s most notable developments. KangaNews speaks to funding executives from Asia, Australia, Europe, Japan and North America to get the latest on market conditions and outlook.

• Stable ground

  Global issuance by financial institutions (FIs) has been informed in recent years by regulatory requirements implemented in the decade following the 2008 financial crisis. The reshaping of banks’ capital structures is now largely complete in most jurisdictions and the market is reaching a new equilibrium. But challenges – including macroeconomic conditions and benchmark reform – remain on the horizon.

• Timing their run: FI issuance patterns in the Australian dollar market

  The pattern of Australian dollar issuance by financial institutions (FIs) since the middle of the current decade indicates a number of relatively reliable execution windows. The timing of Australian dollar FI issuance is weighted toward the beginning and middle of each quarter while the second half of the year sees a notable drop-off in volume.