The Australian asset-management industry continues to grow but it has yet to produce a consistently diverse local credit market. Allocations to income-generating product will likely increase over time, though market dynamics suggest the most liquid and highest yielding ends of the market may have the healthiest prospects.
On 10 May, Vector (BBB/Baa1) revealed an indicative margin of 165-175 basis points over mid-swap for its forthcoming NZ$200-250 million (US$131.9-164.9 million) six-year deal. The transaction is due to open on 13 May, with the final margin and interest rate to be set on 16 May. ANZ, Deutsche Craigs, Forsyth Barr and Westpac Banking Corporation New Zealand Branch are joint lead managers.
Bryan Collins, head of Asian fixed income at Fidelity International (Fidelity) in Hong Kong, speaks to KangaNews about how the investment manager views Australia as an investment destination within the burgeoning regional institutional credit market.