Market conditions in Australia have become harder in 2018 across all sectors, and arguably more so for supranational, sovereign and agency (SSA) issuers given cross-currency basis-swap economics. Borrowers say demand is down, but they remain firmly committed to the Kangaroo and Kauri markets and have found plenty of opportunities to fund.
In August 2018, KangaNews asked supranational, sovereign and agency (SSA) borrowers to respond to a survey of their global issuance patterns and funding profiles – and 27 of the 32 profiled in this yearbook responded. Despite headwinds, survey responses generally indicate optimism about the Australasian capital markets with views on global demand particularly encouraging.
Japanese investors have supported the evolution of long-dated supranational, sovereign and agency issuance in Australia in recent years. However, market factors are combining to call the support these investors have traditionally provided into question. TD Securities gives the latest update.