Online articles

• A growing market in a troubled world

  Two themes emerged most clearly from discussions at the KangaNews Debt Capital Market Summit 2025: the overall healthy state of Australia’s fixed-income market, and the increasingly turbulent world in which it operates. Taking place less than 24 hours before the latest big blow against global free trade taken by the US government, the Trump administration and its consequences were not far from every conversation.

• Aggregator demand should hold up even if rates fall

  In recent years, fixed-income issuers and intermediaries have frequently commented on the growing significance of the aggregator channel in Australian deals – to the extent that the execution of some types of transactions has adapted to suit aggregators’ interests. The next question is what a lower rates environment might mean.

• Australian dollar issuers back capacity

  New issuers and increased funding requirements from established names are testing capacity in the Australian dollar high-grade market. Speakers from across the sector at the KangaNews Debt Capital Market Summit say they are confident that no-one needs to be crowded out – though finding untapped demand will remain a focus point.

• Corporate Australia’s mind may be made up on green bonds

  The 2024 renaissance in Australian dollar corporate bond issuance was not accompanied by an equivalent pickup in issuance of corporate green, social and sustainability or sustainability-linked bonds. While some issuers continue to find value in labelled formats, the pipeline of debut issuers has slowed to a trickle.

• ETFs start to make their mark in Australian fixed income

  Exchange-traded funds have existed for more than 30 years and investors have been able to access Australian bonds via such funds since 2012. But, until recently, fixed income was a niche component of a niche sector locally. As demand soars across retail and institutional channels, however, assets under management have climbed while product innovation and structural change are poised to drive the next wave of...

• First verse of Australia’s AT1 redemption song delivers a few key notes

  There was an unusual degree of scrutiny on the call of ANZ’s Capital Notes 5 additional tier-one security on 20 March as the option to reinvest into a direct replacement is no longer available. There are early signs that – as bank issuers hoped – some funds are being redeployed into tier-two notes, but market sources say it is still too soon to know exactly how reallocation will play out.

• Index inclusion could be another tier-two tailwind

  Australian investors believe the proposed inclusion of tier-two debt in the Bloomberg AusBond Indices will provide a significant tailwind to demand for the asset class. A decision on index inclusion may be imminent though some market users say adding tier-two to indices many investors use for defensive purposes should not be a cut-and-dried affair.

• Inward investment in focus as New Zealand eyes green shoots

  New Zealand is emerging from recession though its recovery to date is patchy by sector and geography. Speakers at the annual ANZ-KangaNews New Zealand Capital Market Forum, which took place in Auckland on 27 March, say attracting a greater volume of international investment – in sectors including the bond market and infrastructure development – will be key to catalysing growth.

• Japanese investors stay the course on Australia and even identify safe-haven effects

  In February, KangaNews and Mizuho Securities convened their annual roundtable for Japanese investors in Australian dollar fixed income, in Tokyo. While technical conditions are mixed, there continues to be robust fundamental support for Australia as an investment destination – the country even has somewhat of a safe-haven role in a challenging world.

• KangaNews Awards 2024: Market People of the Year

  KangaNews is pleased to reveal its Market People of the Year for 2024, which were announced at the KangaNews Gala Dinner in Sydney on 3 April. These are the individuals who voters in the KangaNews Awards 2024 said went above and beyond to contribute to the development of the Australian and New Zealand debt markets. There are no restrictions on the firms, role or seniority of winners – voters were simply asked to...

• KangaNews Awards Gala Dinner 2025

  The leading social event for the fixed income market in Australasia, the KangaNews Awards Gala Dinner, returned to the Ivy Ballroom in Sydney on 19 March. The dinner celebrated the achievements of the winners of the KangaNews Awards 2023, including the announcement of the KangaNews Market People of the Year 2023.

• Kiwis of all stripes flock offshore in search of pricing and liquidity advantages

  New Zealand borrowers are increasingly heading offshore to fund as foreign markets offer up pricing and size outcomes that in many cases outperform those available at home. With at least seven foreign currency deals hitting screens in Q1, the pipeline started the new year in good health – and some issuers even say future activity may not be restricted to senior format.

• Listed market back on the agenda as retail demand scatters post-AT1

  The demise of bank additional tier-one capital in Australia leaves retail investors with little or no fixed-income product that fits its traditional appetite for higher-yielding securities from brand-name issuers. A move to re-examine and improve the path to accessing retail capital for bond issuers could settle once and for all the debate about whether either local issuers or investors truly want this type of...

• Money talks and so does climate change

  The KangaNews Sustainable Debt Summit took place in Sydney on 3 April at a time in which the sustainable finance sector is being forced to reiterate its value and purpose. Market leaders say incorporating sustainability considerations into investment decisions is a necessity, not a choice – and the politicisation of the sector does not change why markets decided to address the issue in the first place.

• New Zealand capital market gears up for growth as recovery starts to take shape

  New Zealand’s return to growth is shifting the focus to what lies ahead: economic recovery shaped by reform, resilience and market agility. At the annual KangaNews women in New Zealand capital markets roundtable, participants discussed how the local market is positioned for the rebound, what still needs work and from where opportunities might emerge.

• Private markets in focus

  In February 2025, the Australian Securities and Investments Commission released Australia’s evolving capital markets: a discussion paper on the dynamics between public and private markets and called for feedback and debate on its regulatory approach to the growing private equity and debt markets. The regulator gave delegates at the KangaNews Debt Capital Market Summit a deeper insight into the consultation and what...

• Reality bites

  While it is far too early to declare that the world is out of the woods when it comes to Trump’s tonto tariff tantrum, by mid-April it certainly seemed that the leader of the free world had largely caved in the face of a foe even he cannot belittle or berate into submission: the bond market. More sane observers than the individual who caused the mess are left wondering whether there might be dramatic longer-term...