Online articles

• Australian government-sector issuers ride the waves of COVID-19

  In June, Westpac Institutional Bank and KangaNews brought together the biggest issuers in the Australian government sector to discuss a rollercoaster ride in markets since the end of March. The issuers describe a relatively straight-line improvement since the thrills and spills of the March-April period, with returning investors supporting increasing issuance volume and liquidity at extended tenor.

• Brighter futures

  Investors are adjusting to a new normal in the Australian high-grade market as conditions settle after March’s turmoil. Reserve Bank of Australia (RBA) bond purchases slowed to a halt by the mid-way point of the year, but investors say its presence is still bringing stability and creating opportunities.

• Competition at risk as fintech lenders potentially slip through the cracks

  COVID-19 has thrown up challenges even for the most established capital markets borrowers. The crisis is particularly acute for newer financial institutions with shorter track records and smaller asset books. Government support should help, but a protracted downturn could make survival of the fittest a best-case scenario.

• Corporates find more crisis funding options

  The economy-wide impact of COVID-19 has affected Australian corporate borrowers in a host of ways. But access to funds has generally remained in place as issuers navigate a path back to some type of normality – even for those in the most affected sectors.

• Debt market issuance trends from May and June 2020

  Deal flow resumed in Australia and New Zealand in the latter months of H1 2020. See insights from the first transactions across the government, global supranational, sovereign and agency, bank and securitisation markets.

• Decoding GSS in Australian fixed income

  In May, Commonwealth Bank of Australia (CommBank) and KangaNews undertook a ground-breaking research project to learn more about Australian fixed-income investors’ green, social and sustainability (GSS) strategies. The results of the Fixed-Income Investor GSS Survey shine the spotlight on a market that has evolved significantly but remains a work in progress.

• Fitch highlights growing risks offsetting Australia’s sovereign strength

  Australia’s sovereign rating will be tested in the coming months as the ramifications of the COVID-19 crisis play out through the economy, according to Fitch Ratings. A newly placed negative outlook on Australia’s AAA rating relates to significant downside risks in the domestic economy, including household debt, as well as global factors such as newly levied trade barriers.

• Fixed-income investors tackle GSS in depth

  Immediately after completing their Fixed-Income Investor GSS Survey, Commonwealth Bank of Australia (CommBank) and KangaNews convened a panel of leading Australian fixed-income investors to discuss and add colour to the survey findings. Investors explain why they think as they do on green, social and sustainability (GSS) issues and share views on how the space may evolve in future.

• From the ashes

  COVID-19 has spurred record volume of social-bond issuance and some sustainable-finance experts believe the crisis will be the catalyst for much more widespread adoption of the instrument. Despite the best efforts of advocates, however, the hurdles to habitual use of social bonds, especially in the private sector, remain high.

• GBP SBP update pushes sustainable debt frontier amid pandemic and recovery

  The Green and Social Bond Principles (GBP SBP) is broadening further the scope of its focus on sustainability in fixed-income markets, with an update to its social bond principles (SBPs) and the launch of sustainability-linked bond principles (SLBPs). The new SLBPs are designed to provide the impetus for more entities to consider sustainable financing options, while the update to the SBPs is particularly relevant...

• Global credit outlook as Ares launches in Australia

  Ares Australia Management launched its first local product, the Ares Global Credit Income Fund, on 12 May. The firm is a joint venture between Fidante Partners and Ares Management Corporation – a global alternative asset manager with US$149 billion under management. Teiki Benveniste, head of Ares Australia Management in Sydney, explains how the fund aims to achieve 3-4 per cent absolute return in an ever-lower...

• Global FIs step into Australia’s big-four bank supply void

  The Australian dollar market hit a sweet spot for global financial institution (FI) borrowers in the second half of May despite the ongoing absence of the biggest local issuers. Intermediaries say the supply gap has caused a technical pricing squeeze that attracts issuers, while offshore FI pricing remains attractive to real-money investors relative to local names.

• How the future works

  There is no doubt we are in a uniquely stressful period, professionally and personally. Our best hope is community spirit. In a rapidly changing but always frightening environment, talking to people in the market about the challenges we face has been heartening.

• Insights from the corporate front line: Brisbane Airport and the COVID-19 crisis

  Airports around the world have gone quiet as result of COVID-19, bringing corporate liquidity to the fore. Brisbane Airport Corporation was able to re-engage the Australian domestic market in late June for a deal it was looking to execute prior to the crisis. The airport’s head of corporate finance, Warren Briggs, speaks with KangaNews about the deal process and crisis management.

• Kāinga Ora’s funding journey so far

  It has been two years since Kāinga Ora – Homes and Communities re-entered debt capital markets, in which time the agency’s funding requirement and market footprint have grown significantly. Sam Direen, treasurer at Kāinga Ora in Wellington, discusses the development of the funding programme including the emphasis on sustainable debt and the impact of the COVID-19 crisis.

• KangaNews Awards 2019: Market People of the Year

  The KangaNews Market People of the Year are the individuals who voters in the KangaNews Awards 2019 believe went above and beyond their roles to contribute to the development of the Australian and New Zealand debt markets. There are no restrictions on the firms, positions or seniority of winners – voters are simply asked to consider who contributed most to the market in either or both 2019 specifically or...

• Open economy, closed border: opportunities and challenges in New Zealand

  New Zealand’s government-sector issuers experienced market upheaval as severe as their neighbours in Australia during the height of the COVID-19 crisis in March and April. Intervention from the Reserve Bank of New Zealand (RBNZ) and an enviable pace of economic reopening have improved the outlook, but issuers at a KangaNews-Westpac roundtable in June say plenty of challenges remain to be faced.

• Plenty more issuance but strong starting position for NZDM

  New Zealand Debt Management (NZDM) is facing a funding task in the coming years multiples higher than even its most active historical programmes. Kim Martin, New Zealand Treasury’s Wellington-based acting director, capital markets, discusses the solid starting position and execution plans for the coming issuance requirement.

• Queensland finds strength in its diversity

  Queensland is among Australia’s most diverse state economies. The state’s treasurer and minister for infrastructure and planning, Cameron Dick, speaks to KangaNews about how this diversity is helping the state through the COVID-19 crisis.

• TCorp's toolkit expands to meet growth in future funding need

  New South Wales Treasury Corporation (TCorp) has managed a growing funding task through the various Australian and international crises of the last year. Fiona Trigona, head of funding and balance sheet at TCorp in Sydney, discusses the tools that will enable the state treasury corporation to continue managing a higher call on debt capital markets.