In late August, ANZ and KangaNews hosted their third annual bond trading roundtable – this year adding the perspectives of a range of spread product issuers. In a challenging year for credit pricing and liquidity, market users discussed trading conditions, emerging confidence and what secondary activity says about new-issuance prospects.

Investment-grade corporate Australia has weathered the COVID-19 crisis better than could have been expected as the pandemic accelerated in March and April 2020, according to participants at a Fitch Ratings-KangaNews roundtable at the end of the year. A supportive local debt market was just one of the factors behind this resilience.

While true corporate deals in the Australian market last year did not reach the heights of 2017, a second-half resurgence brought record volume from triple-B issuers and hints that extended duration is on the cards once more. The question is whether the corporate space will continue to grow in 2020 or lose momentum as it did in 2018.

Pacific National printed Australia’s largest 10-year corporate bond so far this year and the issuer’s largest in the domestic market on 18 September. Deal sources say the transaction makes clear once again that domestic support for 10-year corporate paper is available for issuers willing to test it.

On 18 September, Pacific National (BBB-/BBB-) launched a new 10-year, Australian dollar denominated benchmark transaction, offered in either or both fixed- and floating-rate format. The deal is being marketed at 260 basis points area over swap benchmarks, according to joint lead managers ANZ, Commonwealth Bank of Australia, MUFG Securities and National Australia Bank.