The New Zealand Financial Markets Association’s recently published debt capital market guidelines give participants a roadmap to greater clarity and best practice, particularly for new and infrequent issuers. The guidelines are part of the association’s push to develop New Zealand’s debt market, making it more inclusive.
New Zealand’s official cash rate will likely hit 4 per cent, but a range of domestic and global factors will dictate how long it stays elevated. The impact of a higher rate on the country’s economy, however, is unclear – particularly as interest rate risk remains to the upside, according to economists.
The first half of 2022 was a record for nonsovereign Australian dollar debt issuance, the market riding out increasing headwinds to record a significant uptick in supply. Volume was driven by substantial bank new-issuance requirements and elevated semi-government funding needs, while some sectors – notably true corporate supply – were much quieter.