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The Australian market saw a quiet week in the run up to the Easter holidays with limited deal flow. By far the bigger news came when Standard and Poor's (S&P) put the AAA rating of the USA on negative outlook. While market participants believe the Australian market could be a beneficiary if global investors intensify their turn away from US debt, they also hope the warning will act as a catalyst for the US government to take action.

Singapore's United Overseas Bank Sydney Branch (UOB Sydney) (A+/Aa1/AA-) launched and priced its debut Australian dollar transaction on April 20, issuing a A$350 million (US$370.9 million) three-year transaction. The issuer met Australian investors in the week beginning April 12.

On May 23 Genesis Power, trading as Genesis Energy (BBB+/Negative), issued NZ$275 million (US$216.3 million) of capital bonds (BB-) at a rate of 8.5 per cent for the first five years. The leads agree that the unique equity-focused structure was best suited to the issuer, with the deal primarily driven by retail investors.

On April 13 Rabobank Nederland Australia Branch (AAA/Aaa) and Rabobank Nederland New Zealand Branch (AAA/Aaa) priced seven-year deals simultaneously in the domestic Australian and New Zealand markets. The issuer and intermediaries agree that the deals reveal a strong underlying level of demand for financial institution (FI) paper, particularly from fund managers.

The Australian domestic bond market saw record issuance in the first quarter, with consistent volumes of more than A$5 billion (US$5.3 billion) pricing in each of the first three months of the year. By contrast, a sluggish March saw Kangaroo issuance fall away from the record volumes placed in January and February, while the New Zealand domestic market – although matching last year's deal flow – is also well short of its peak.

QIC Shopping Centre Fund (A-) launched and priced a new domestic issue on April 15, achieving a target volume of A$200 million (US$211.1 million) for the July 2014 maturity. The deal priced at 125 basis points - slightly tighter than the indicative level of 130 basis points over swap.

On April 13 Rabobank Nederland New Zealand Branch (AAA/Aaa) priced a new NZ$250 million (US$197.6 million) April 2018 floating rate note (FRN), at 145 basis points over three-month FRA. This follows the pricing of a A$600 million fixed rate April 2018 deal issued by Rabobank Nederland Australia Branch (AAA/Aaa) on the same day.

Intermediaries and investors alike agree that Westfield Retail Trust (WRT)'s (A+) inaugural transaction provides further positive impetus to the Australian corporate bond market, with continuing improvements in tenor, volume and pricing encouraging issuers to stick to their home market. Prospects for the corporate sector overall look promising, with this year's issuance volume already nipping at the heels of 2010's figure.

Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden (FMO) (AAA/Stable: S&P), and guaranteed by the Dutch government, has issued its inaugural Kangaroo issue. The new A$200 million (US$211 million) April 2014 floating rate note priced at 50 basis points over the bank bill swap rate.