Tier-two comes to the party as Suncorp adds to Australian financial supply
Suncorp Group maintained a recent trend for significantly oversubscribed Australian dollar deals by financial institutions with its return to the domestic tier-two market on 20 September. The issuer notes wide support for the deal despite ongoing uncertainty about the potential acquisition of Suncorp Bank by ANZ Banking Group, saying market depth may reflect fundamental system growth.
Australian issuance hits the right note for Chorus – and more Kiwis may follow
Chorus has joined the growing group of New Zealand corporate issuers to add the Australian dollar market to their funding – and deal sources say there may be more to follow. Chorus says its decision to introduce an Australian dollar programme was strategic and that it plans to be a repeat issuer.
The heart of the deal
One of the main factors put forward to explain why Australian true corporate issuance continues to underperform in an otherwise largely positive local credit market is suboptimal execution practice. KangaNews goes inside the deal process with parties on all sides of transactions to understand why many market users believe execution is letting the local corporate market down.
BOJ’s warning shot reverberates
The Bank of Japan’s decision to ease its longstanding yield curve control policy, allowing the 10-year Japanese government bond yield to rise as high as 1 per cent, reverberated through global bond markets. While there is no expectation of an immediate, wide-scale change in Japanese investor behaviour, Australian fixed income sectors with a longstanding reliance on the Japanese bid have reasons to watch the policy path closely.
Regional banks chart a course through choppy waters
With weakness in the US regional bank sector prominent in debt investors’ thinking and consolidation never far from the front pages, Australia’s nonmajor banks might have expected a challenging funding environment in 2023. Instead, solid balance sheets and the generally positive environment for financial credit have helped issuance maintain a steady path.
Read more: Regional banks chart a course through choppy waters