The KangaNews New Zealand Debt Capital Market Summit took place in Auckland in September, at a critical juncture for all of the local political, economic, market and environmental transition stories. Conversations at the conference were more wide-ranging than ever, with contributions from the political, business and markets sectors at a moment when the agenda for the coming years is being formed in real time.

The KangaNews New Zealand Debt Capital Market Summit closed with a discussion between the treasurers of the local big-four banks, at a time when these institutions find themselves in the crucible of rising rates, soaring inflation and volatility in global funding markets. The treasurers discussed capital, funding and asset stability, and the challenges ahead.

The KangaNews New Zealand Debt Capital Market Summit returned to Auckland on 7 September, attracting a record audience as the market gathered after two years of disruption during the pandemic. The New Zealand economy is at the forefront of the global battle against inflation and its capital market is changing shape rapidly, including the all-important factor of sustainable finance. Speakers at the event reflected on the risks and opportunities.

As the Reserve Bank of New Zealand demands local banks increase their resilience through enhanced capital requirements, mutual banks face a familiar challenge: how to access additional capital without putting their mutual status under threat. The central bank is consulting on two potential capital instrument options for the mutual bank sector – but may not introduce either.

The KangaNews New Zealand Debt Capital Market Summit 2021 incorporated a detailed focus on the market and funding outlook for the local bank sector. At a centrepiece session on the agenda at the December 2021 event, treasurers from the local major banks gathered for a discussion on mortgage lending, funding conditions and how they plan to navigate a rising rate environment.

The New Zealand securitisation market experienced an upswing in 2021, bouncing back from the challenging global environment that led to limited activity the prior year. This was highlighted by a larger number of term deals and a more diverse range of investors. While the next step is difficult to predict, Russell McVeagh partner Deemple Budhia, senior associate Ling Yan Pang and senior solicitor Jemma Milicich are optimistic the New Zealand market will maintain its positive growth during 2022.

Financing solutions and adaptation to climate change is stoking capital-markets innovation around the world. In New Zealand, increasing forest cover is key to meeting Paris Agreement targets – and local market participants are keen to germinate a specialised financing instrument to support progress.

New Zealand’s domestic banks have clarity on their new capital requirements following the conclusion of the Reserve Bank of New Zealand (RBNZ)’s consultation in early December. The RBNZ gave some concessions on eligible instruments and timeframe but market commentators still believe the new regime will have a greater impost than the regulator foresees.

Australian Securitisation 2019 took place in Sydney on 18 and 19 November with market-leading commentary on the evolution of the securitisation market, including collateral, lending regulation and benchmark reforms. The Australian securitisation market is poised to enter the next decade in robust shape, reflected by a record registration for and attendance at the Australian Securitisation Forum’s annual conference.

The seventh annual KangaNews New Zealand DCM Summit took place in Auckland on 22 August at a fascinating juncture for the local debt market. Discussion focused on forthcoming changes to bank-capital requirements and the finalisation of a bank securitisation regime locally, the global context of trade wars, the low interest-rate environment and major capital-market upheaval.