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The Australian Office of Financial Management (AOFM) released an issuance programme update on 3 April. The AOFM says Treasury bond issuance via tender will be around A$5 billion (US$3 billion) in most weeks. It also revealed plans for new syndicated issuance.

The following interview is with an Australian-based head of bond syndicate. It was conducted on 25 March 2020.

On 3 April, Toronto-Dominion Bank (TD Bank) launched a new three-year, Australian dollar denominated, floating-rate note, covered bond transaction. The forthcoming deal, which is expected to price on the day of launch, has indicative price guidance of 125 basis points area over three-month bank bills.

On 3 April, New Zealand Debt Management (NZDM) (AA+/Aaa/AA+) mandated ANZ, BNZ, Commonwealth Bank and UBS for a syndicated tap of its May 2031 bond. The deal is expected to launch in the week beginning 6 April.

Moody’s Investors Service has changed its outlook on the Australian banking system to negative. The rating agency says the move is based on the expectation that the banks’ operating environment, capital positions and loan quality will be materially weaker when Australia starts to emerge from the COVID-19 crisis.

Judo Bank is the recipient of the first tranche from the Australian Office of Financial Management’s Australian Business Securitisation Fund, the AOFM revealed on 2 April. Judo will also receive support from the structured finance support fund. The immediate future of the ABSF is unclear, however, as the AOFM has also suggested that proposals for ABSF support may be rolled into the SFSF.

The following interview is with an Australian-based fixed-income investor. It was conducted on 20 March 2020.

On 2 April, Canadian Imperial Bank of Commerce Sydney Branch (CIBC Sydney) (A+/Aa2/AA-) launched a new three-year, Australian dollar denominated, floating-rate note, covered bond transaction. Indicative price guidance for the forthcoming deal, which is expected to price on the day of launch, is 125 basis points area over three-month bank bills.

The Reserve Bank of New Zealand (RBNZ) has added a term-lending facility (TLF) for banks to its suite of COVID-19 relief measures. It has also restricted banks from redeeming capital instruments that are not common-equity tier-one (CET1).