Conversations at the KangaNews Debt Capital Market Summit, which took place in Sydney on 20 March, naturally focused on the fallout from bank collapses that immediately preceded the event. The overall view was that relatively positive conditions in the fixed-income market would be reshaped but perhaps not fundamentally weakened by the emerging developments.

The KangaNews Debt Capital Market Summit returned to Sydney as an in-person conference in May. Discussions covered a range of topics including rising inflation, central bank policy and trading in a highly volatile market. The increasing interest in environmental, social and governance issues was another talking point.

The introduction of uncleared-margin rules for OTC derivatives in Australia is leading market participants to consider central-clearing solutions. As the regulations capture a growing number of users, ASX says the need to move away from bilateral trading and manage compliance obligations is growing.

The KangaNews Debt Capital Markets Summit 2021 virtual event took place on 9 June, ahead of another important period for the Australian economy and market’s emergence from the COVID-19 crisis. Discussions throughout the day reiterated the importance of Reserve Bank of Australia policy settings for determining the path of both.

The launch by the Australian Securities Exchange (ASX) of a new five-year Australian Commonwealth government bond (ACGB) futures contract is well timed to meet the needs of an evolving market and should therefore attract liquidity from listing, market participants believe.

Investors are adjusting to a new normal in the Australian high-grade market as conditions settle after March’s turmoil. Reserve Bank of Australia (RBA) bond purchases slowed to a halt by the mid-way point of the year, but investors say its presence is still bringing stability and creating opportunities.

Increased issuance from the AOFM – including targeting maturities of 3-5 and 10-12 years – and the Reserve Bank of Australia (RBA)’s intervention in the Australian sovereign bond market have accelerated Australian Securities Exchange (ASX) thinking about a new contract in its bond futures suite. The exchange is planning to introduce a new five-year contract by the end of the year.

End users can no longer ignore the domestic and international process of reforming benchmark rates, according to speakers at the International Swaps and Derivatives Association (ISDA)’s annual Australian conference in Sydney. The local market is less than halfway through its own transition and the main concern is lack of engagement from many issuers and investors.

The seventh annual KangaNews New Zealand DCM Summit took place in Auckland on 22 August at a fascinating juncture for the local debt market. Discussion focused on forthcoming changes to bank-capital requirements and the finalisation of a bank securitisation regime locally, the global context of trade wars, the low interest-rate environment and major capital-market upheaval.