The Reserve Bank of New Zealand’s liquidity policy review could fundamentally reshape the way bank liquidity books – some of the country’s most important fixed-income investors, especially in the high-grade space – allocate their money. A worst-case outcome could weaken funding opportunities, the overall health of the New Zealand capital market and even the cost of credit across the economy.

Every year, ANZ and KangaNews gather global market participants at a roundtable in London to discuss the state of play in fixed-income issuance and investment. The 2023 discussion, which took place in mid-June, took in the growing appeal of the asset class, dynamics that are reshaping currency and tenor of issuance, and ever-growing scrutiny in sustainable finance.

Some of the world’s leading issuers from the supranational, sovereign and agency sector took part in a virtual discussion about funding conditions and issuance approaches in mid-2023. The borrowers tell KangaNews the Kangaroo market has an increasingly structural role in their funding plans despite ever-changing demand dynamics. The New Zealand market, meanwhile, is facing up to a major regulatory risk event.