Online articles

  • A bigger slice of tier-two

    The Australian Prudential Regulation Authority (APRA) determined on 9 July that Australia’s major banks will need to increase their capital ratios by 3 per cent of risk-weighted assets (RWAs) by 2024 to satisfy total loss-absorbing capacity (TLAC) equivalent requirements. How and where the major...
  • ABSF to start cautiously before contemplating esoteric allocation

    The Australian Office of Financial Management (AOFM) released its final investment principles for the Australian Business Securitisation Fund (ABSF) on 22 July. In speeches in Sydney and Melbourne, the AOFM suggested that ABSF investment will start cautiously in areas close to the existing market...
  • Good times, bad times for Australian major-bank funders

    KangaNews and RBC Capital Markets held their annual roundtable for heads of funding at Australia’s big-four banks at a fascinating juncture for the sector. Limited credit growth and highly supportive demand conditions are clearly assisting the funding task in the near term. The requirement to...
  • H1 Australian issuance review: volume up but corporate market struggles

    Australian bond issuance was healthy overall in the first half of 2019 but continued to struggle to produce credit diversity, according to KangaNews’s transaction data. Elsewhere, the securitisation market delivered volume and breadth while high-grade Kangaroo issuance swung back to the mid-curve.
  • Investment for an uncertain future

    KangaNews and National Australia Bank’s Fixed Income Beyond the Institutional Sector Summit returned to Sydney on 1 August. Agenda discussions focused on the future economy and what investors need to do to adapt to a rapidly changing world, with perspectives from a stellar range of speakers...
  • QE: not quite everywhere

    Despite increasing speculation about further stimulus in Australia as the cash rate continues to fall, most analysts believe it is unlikely the Reserve Bank of Australia (RBA) will employ QE this economic cycle. However, this has not stopped the spectre of QE from looming on the horizon as rates...
  • Signs of maturity

    Almost without comment, the Australian dollar market is showing signs of evolving to a new phase of maturity. Despite notable headwinds, a look beneath the surface of deal volume clearly indicates depth and breadth of demand that puts historical norms into the shade. Supply is surely the only...
  • The SLL door opens in Australia

    ING Bank (ING) was the global pioneer of sustainability-linked loans (SLLs). In August, the bank hosted a roundtable with KangaNews in Sydney to discuss the product’s emergence and its relevance to Australian corporates. Borrowers say SLLs could gain traction above and beyond what green bonds have...
  • Winds of change in the domestic FI market

    An influx of financial institution (FI) supply from outside the domestic major-bank space came to the Australian dollar market in July. Market sources say the reality of a likely decline in major-bank senior supply going forward – and consequently tighter big-four senior spreads – has caused...
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