Telstra
Market growth despite clouded economic outlook
Two themes emerged strongly from conversations at the 2024 Commonwealth Bank of Australia Global Markets Conference, which took place in Sydney and Melbourne in October. One is the shifting tectonic plates of geopolitics and macroeconomic norms, which makes forecasting the outlook more challenging than ever. The other is the underlying growth and improved functionality of the Australian debt market, which is producing opportunities and attracting capital in the high-grade and credit sectors.
Corporate Australia makes hay in global markets
In November, Crédit Agricole CIB and KangaNews arranged a roundtable discussion for some of Australia’s leading corporate issuers. At the back end of a phenomenal year for local and global credit issuance, participants discussed demand, funding and execution strategy, the growing prominence of the euro and Australian dollar markets, and the changing manner in which investors are addressing sustainability. Separately, KangaNews spoke to key buy-side accounts in Asia and Europe to hear their perspective on Australian credit.
Australian corporate deal outcomes suggest investors are prioritising yield
A trio of transactions from inner-circle Australian blue chip corporate names in early September suggest investor interest is keenest in higher-yielding good-quality product. Scentre Group received overwhelming demand for a subordinated deal, and while Telstra Group and Woolworths were also well covered and able to execute quickly the response was more measured.
Demand for Telstra shows corporate market no longer a blue-chip-only story, leads say
The size and breadth of demand for Telstra’s latest deal stands out – especially the scale of bids for 10-year corporate bonds. But deal sources say buy-side interest in corporate transactions is wider than it was a year ago and should support supply from a range of issuers.
Corporate sweet spot
Australian corporate borrowers have every reason to favour debt capital markets over bank loans for their funding needs in 2023. Risk events and the economic outlook mean caution remains the order of the day domestically, however, and while deal flow is likely to pick up market participants acknowledge that global options are providing strong competition.
Australian market takes stock of new inputs
Conversations at the KangaNews Debt Capital Market Summit, which took place in Sydney on 20 March, naturally focused on the fallout from bank collapses that immediately preceded the event. The overall view was that relatively positive conditions in the fixed-income market would be reshaped but perhaps not fundamentally weakened by the emerging developments.