Latest News
Securitisation market participants say the slow start to the issuance year in their sector comes as no surprise given wider market conditions. They also acknowledge ongoing demand challenges that could shave volume off deals from the largest issuers in particular – but remain confident that deals will come through, and be available to a diverse range of issuers.
On February 18, National Australia Bank (NAB) (AA-/Aa2) mandated a new, self-led, three-year senior benchmark Australian dollar transaction. According to KangaNews data, the forthcoming deal will be NAB's first domestic-market foray of 2016.
On February 17, Transurban Finance (Transurban) issued an early redemption notice to the holders of its "series 12 non-credit-wrapped MTNs" which mature on June 8 this year. According to a statement released by the issuer, the offer covers A$200 million (US$142.16) of the floating-rate notes – or the total outstanding principal amount.
Australian and New Zealand deal activity slowed dramatically in the second week of February, with just one Kangaroo issue priced. Elsewhere, Commonwealth Bank of Australia released its half-year results on February 10, and revealed a measured response to growing external pressures.
A further strengthened capital position was emphasised by Commonwealth Bank of Australia (CommBank) in its February 10 half-year results presentation and in the media briefing which followed. The bank says it is cognisant of growing external pressures in funding markets but is taking a measured approach in response.
Australian-origin corporate issuance has been even slower than usual at the start of the new year, both at home and offshore. However, with reporting season fast approaching intermediaries believe global markets will continue to offer opportunities to Australian companies – albeit with challenges.