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.
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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.
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 recent weeks, the pipeline shows no sign of slowing down – and some issuers even say future activity may not be restricted to senior format.
More offshore Kiwi action as ANZ prints euro senior deal
ANZ New Zealand nipped into the euro market on 19 March ahead of its half-year results to take €500 million from a no-grow trade. This was the bank’s second senior outing in just over a month as the issuer refocuses its funding activities in the format after a slew of additional capital issues.