Online articles

  • Flux capacity

    New Zealand market participants gathered virtually on 20 August for the ANZ-KangaNews New Zealand Capital Markets Forum (NZCMF). New Zealand’s economy, politics and COVID-19 response are setting the market’s parameters, and discussion focused on managing through and beyond the current rocky patch.
  • ANZ’s market return from all angles

    ANZ Banking Group’s capital-markets return, on 19 August, marked the first major-bank domestic tier-two deal since late 2019 and the sector’s first Australian dollar green, social and sustainability (GSS) bond since 2017. It is ANZ’s third transaction under its SDG framework, which aligns use of proceeds with the UN Sustainable Development Goals, having previously only issued in the euro market.
  • Australian corporate market poised and hopeful for a smoother second half

    The Australian dollar corporate debt market finished the first half of 2020 with a flurry of deals and greatly improved sentiment. Corporate originators do not expect the floodgates of issuance to open in the second half but say conditions should be supportive for active issuers.
  • Bank funders and the future of the market gap

    Every year, KangaNews and RBC Capital Markets host the heads of funding from Australia’s big-four banks to discuss market conditions and the outlook for their sector. In 2020, the COVID-19 crisis has reshaped the landscape completely – most notably by almost completely eliminating the majors’ funding gap and thus removing them from public senior debt markets since the first months of the year.
  • BNP Paribas touts double impact of equity-index-linked green-bond structure

    BNP Paribas’s debut as a Kangaroo green-bond issuer also introduced a globally innovative structure to the local environmental, social and governance (ESG) market. The transaction, which priced on 3 August, is a standard use-of-proceeds green bond that also rewards investors for the outperformance of a new forward-looking climate-transition equity index.
  • Issuance keeps pace despite disrupted H1

    Transaction data from KangaNews’s deal database highlight a strong second half of 2019 in the Australasian credit market. Meanwhile, syndicated semi-government supply notably increased, the green, social and sustainability bond space grew significantly and New Zealand domestic issuance achieved record 12-month volume.
  • KangaNews DCM Summit RBA webinar

    KangaNews hosted an exclusive briefing with the Reserve Bank of Australia (RBA) as part of the KangaNews Debt Capital Markets Summit 2020 online agenda. The reserve bank updated on the market-intervention measures it has rolled out since the start of the COVID-19 crisis while market participants discussed the RBA’s involvement from a range of perspectives.
  • KangaNews Fixed-Income Research Poll 2020: results announced

    KangaNews is pleased to announce the results of its 10th annual Fixed-Income Research Poll. The survey polls the opinions of institutional investors in the Australian fixed-income market on the research they receive across a range of sectors. This year’s results include a new winner in the coveted best overall provider category.
  • Next steps for new reference-rate adoption

    While Australia is not facing the same compulsion as other global markets to drop its credit reference rate – in this case the bank-bill swap rate (BBSW) – there is still growing reason for market participants to understand, and start using, alternative reference rates (ARRs). Commonwealth Bank of Australia (CBA) took a leadership position in 2019 by pricing a securitisation deal linked to Australian overnight...
  • No obvious circuit breaker for Kangaroo SSA supply

    Pricing in the Australian dollar supranational, sovereign and agency (SSA) market remains dislocated, intermediaries say, based on lack of alignment between domestic investor and offshore borrower pricing expectations. A number of factors are at play, not least among them the record support SSA borrowers are receiving in global markets.
  • No turning back

    COVID-19 has dominated global market bandwidth in 2020, to the extent that many regulatory initiatives and other market-development projects have been put on pause. This cannot be said for the process of adapting to the demise of interbank offer rates (IBORs), for which the hard deadline of 31 December 2021 continues to loom.
  • On the – virtual – ground with Kāinga Ora

    Kāinga Ora – Homes and Communities (Kāinga Ora) held its inaugural virtual investor day on 19 August to showcase its role as a world-class public-housing landlord and leader in delivering urban-development projects. The goal was to explain the agency’s role to debt investors beyond the normal tenets of its funding programme.
  • Rapid renaissance

    Asian demand has been a consistent component of the Australian dollar credit market in recent years and – to the surprise of some – has emerged from the first phase of the COVID-19 crisis as a still-reliable bid. Yield and credit quality factors are crucial, as the relative stability Australian credit offers attracts consistent demand.
  • Silver linings

    There can’t be many people who would put 2020 down as a vintage year. In fact, I think most of us would probably have rather gone to sleep in late February and not woken up until Christmas. While we might not be enjoying much of what 2020 has thrown at us, unique circumstances have given the Australian debt market a chance to demonstrate a new level of maturity and resilience.
  • Tier-two tee-off

    Four Australian issuers executed tier-two deals in the week of 17 August, reviving a subordinated debt market that had lain dormant since the onset of the COVID-19 crisis. Deal sources say demand for Australian tier-two paper is strong at home and abroad.
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