Australian Office of Financial Management
On 22 October, KangaNews hosted the latest in the KangaNews Debt Capital Markets Summit 2020 webinar series. The session had a rates-market flavour, including a discussion between some of Australia’s leading market participants about how massively increased sovereign issuance, central-bank intervention and a raft of new dynamics will shape their sector.
In June, Firstmac issued Australia’s first solely green residential mortgage-backed securities deal. The local market has seen consistent though small-scale green securitisation of nonmortgage assets. Market participants are now somewhat optimistic about more supply in the mortgage space.
Inflation signs are emerging faster and more frequently in other global jurisdictions, but there is enough inflation smoke in Australia for market users to be contemplating the fire. When it comes to inflation-linked bond issuance, local experts say the market story is not as simple as more interest equating directly to demand for, or supply of, physical product.
The Australian Office of Financial Management says demand for its latest Treasury indexed bond syndication was consistent with its historical experiences despite increased market focus on the inflation outlook. The government debt-management agency returned to inflation-linked syndication for the first time since September 2018 and does not foresee a significant increase in supply.
HIGH-GRADE ISSUERS YEARBOOK 2021
The ultimate guide to Australian and New Zealand government-sector borrowers.