The Australian Office of Financial Management (AOFM) published draft investment principles for the Australian Business Securitisation Fund (ABSF) on 23 May. The proposed investment approach is notably broad, with the AOFM planning to take a “principles-based rather than prescriptive” approach to catalysing SME lending.
Australian Capital Territory (ACT) (AAA by S&P) launched a new, 10-year, benchmark domestic deal by syndication, on 15 May. The forthcoming transaction is being marketed in the range of 63-67 basis points area over the 10-year futures contract, equivalent to 64.25-68.25 basis points area over Australian Commonwealth government bond.
Western Australian Treasury Corporation (WATC) revealed a A$7.7 billion (US$5.3 billion) borrowing programme for the 2019/20 financial year on 13 May, following the release of the Western Australia (WA) state budget on 9 May. The new-money requirement is A$1.1 billion, down from the estimated A$1.5 billion at the last update on 31 March.