Online articles

• A tale of two records

  Two significant sectors of the Australian credit market – securitisation and corporate bonds – broke full-year issuance records by the end of Q3 2024. The coincidence of timing naturally leads to comparisons between the two. But it is their differences that reveal more about their prospects and give pointers about what the corporate market in particular needs to do to build on its momentum.

• Another annual issuance record falls as Australian dollar securitisation soars

  The Australian dollar securitisation market passed its all-time annual issuance record with a full quarter to spare and the pipeline still pumping out new deals. The sector’s leading intermediaries highlight offshore demand and exceptional growth in the nonmortgage securitisation space as primary growth drivers, while hopes are high that the positive issuance environment can roll into 2025.

• Australian bond market takes AT1 phase-out proposals in stride

  Australian debt capital market participants say the local banking system regulator’s proposal to scrap additional tier-one debt from the capital stack and replace it with tier-two securities and equity by 2032 is manageable. They believe the market is well-positioned to take down the implied additional volume of subordinated issuance, though there are notable risk factors to a move that will make Australia stand...

• Australian dollar corporate issuance hits a record high with hopes for more in 2025

  Australian dollar corporate bond issuance has broken a record for annual supply that had stood for seven years. While record years have often been a precursor to disappointment in this sector, intermediaries say near- and long-term conditions look good for 2025 – though it may take an uptick in offshore corporate supply for volume to go to a new level.

• Australian market role soars for corporate issuers

  The KangaNews-Bank of China Corporate Borrowers’ Intentions Survey 2024 indicates not only that issuers have increased their focus on the Australian dollar market but also that they expect this engagement to continue in at least the medium term.

• Building a capital market to support sustainable growth

  For the first time, the KangaNews New Zealand Debt Capital Market Summit brought together the heads of institutional bank at New Zealand’s big-four banks to discuss the capacity and capabilities of the local market, the economic outlook and the next wave of challenges and opportunities.

• Clock ticking on foreign branch ADI tax challenge but resolution confidence grows

  An issue that some market participants believe should be an administrative detail could, if not cleared up, affect the viability of Australian dollar issuance by the local branches of international banks. Resolution rests with Australian federal Treasury, though market participants are working to find a solution and there are hopes of a timely resolution perhaps as soon as this year.

• Investors’ focus tightens on ESG reporting

  The KangaNews-Bank of China Corporate Borrowers’ Intentions Survey 2024 indicates not only that issuers have increased their focus on the Australian dollar market but also that they expect this engagement to continue in at least the medium term.

• New Zealand credit supply debate focuses on bank issuance

  The New Zealand primary bond market picked up around the turn of the fourth quarter after a disappointing first half. An expected uptick in bank issuance – including additional capital securities – also appears to be underway. But the challenge of undersupply remains, leading to fundamental questions about the role of the local credit market.

• New Zealand’s debt market gets ready to deliver

  The KangaNews New Zealand Debt Capital Market Summit 2024 – which took place in Auckland on 11 September – delivered a report card on local market functionality and ability to deliver capital where it is needed. Participants discussed a raft of challenges including financing infrastructure and transition, and providing investors with diversity and liquidity. An improving economy and growing scale hold promise for...

• No easy answers to Australia’s housing supply crisis

  Housing availability and affordability is one of the most problematic areas of the Australian economy, bringing tremendous social costs and wider ramifications. A panel of experts discussed the issue at the KangaNews Corporate Debt Summit 2024, with the conclusion that the issue can probably only be fixed over a protracted period and with attention directed to the right areas rather than being distracted by...

• Summing up the corporate equation

  The KangaNews Corporate Debt Summit 2024 took place on 17 October, a matter of weeks after the Australian dollar corporate bond market passed its record for full-year issuance volume (see p21). Speakers discussed the prospects for a newly vibrant local debt funding option, and an economic and business environment where cautious optimism is the mood of the day.