New Zealand Local Government Funding Agency
New Zealand’s government-sector issuers experienced market upheaval as severe as their neighbours in Australia during the height of the COVID-19 crisis in March and April. Intervention from the Reserve Bank of New Zealand (RBNZ) and an enviable pace of economic reopening have improved the outlook, but issuers at a KangaNews-Westpac roundtable in June say plenty of challenges remain to be faced.
The New Zealand capital market is working its way through regulatory changes and awaiting certainty on the turn of the rates cycle. But domestic and international high-grade market participants who joined a roundtable discussion hosted by KangaNews and Westpac in July say the direction of travel is largely positive.
Local investors say liquidity in New Zealand’s high-grade bond sector is imperfect, but generally around the mid-point of historical ranges for spreads and turnover. The uncertain regulatory environment is a near-term hurdle.
HIGH-GRADE ISSUERS YEARBOOK 2023
The ultimate guide to Australian and New Zealand government-sector borrowers.