During the Global Financial Crisis (GFC), bank consolidation was a major action undertaken to ensure global financial stability. In Australia, key transactions included Commonwealth Banks takeover of BankWest and the merger of Bendigo Bank and Adelaide Bank. Since then, market concentration in the Australian banking system has lessened competition among participants (Figure 1). Figure 1. Relative size of Australian banking [...]
When investing in the ASX-Listed Debt & Hybrid market, an important consideration is liquidity. Given the market’s size of ~$60 billion, liquidity can be limited and if a major announcement occurs it may be difficult to get in or out of positions. For this reason, investors may have to accept a lower price to sell or pay a higher price [...]
In recent years, non-financial corporate security issuance into the ASX-Listed Debt & Hybrid market has dwindled. There has been a number of factors but a standout contributor has been the change to credit rating methodology known as ‘equity-credit’ where hybrid securities are classified as equity (instead of debt) from a credit rating perspective. This maintains the underlying issuer’s credit metrics when [...]
On 28th February 2017, Challenger Ltd (CGF) announced a new issue namely Challenger Capital Notes 2 (prospective ASX Code: CGFPB). The purpose of this transaction is to provide Regulatory Capital for the group but more specifically, it will be treated as additional Tier 1 capital. The indicative size of the offer is [$350 million] but CGF retain the ability to [...]
On the 20th of February 2017, the Commonwealth Bank of Australia (CBA) announced a new issue namely PERLS IX (Prospective ASX Code: CBAPF). The notes are expected to be issued on the 31st of March 2017. The purpose of this transaction is to provide Regulatory Capital for the group but more specifically, it will be treated as additional Tier 1 [...]
In 2017, there are a number of major scheduled call dates and final redemptions in the ASX-listed Debt & Hybrid Market. While it is important to ensure that capital is paid back, many investors require a new investment vehicle to reinvest the repaid funds. For this reason, we have given our thoughts on potential refinancing for major securities scheduled to [...]
In a stress test of Eurozone’s biggest lenders carried out by ECB last year, UniCredit emerged as the sixth weakest bank in the region. In an effort to distance itself from Italy's prolonged banking crisis the Italian bank unveiled an “aggressive and immediate” approach to cut asset hangover and clean up its balance sheet in December 2016. After various disposals [...]
In 2016, hybrids rebounded strongly following a weak first quarter to finish the year up 9.2%. This was driven by tighter credit spreads as both institutional and retail investors showed particularly strong support for hybrids. This rally was primarily driven by technical factors due lack of new supply during the second half with a number of corporate issuers choosing to not [...]
On the 15th of December 2016, Crown Resorts Limited (ASX: CWN) announced the decision to further sell down its share in Melco Crown Entertainment Limited by 13.4% to 14%. The transaction is expected to generate ~$1.6 billion and funds will be used to reduce net debt by ~$800 million, pay a special distribution of ~$500 million and facilitate of share [...]
Last week we entered the holiday period which is generally categorised as quiet for all financial markets. So, what can we expect over the next two months before reporting season commences once again in February 2017? As many companies in Australia shut down for the majority of the holiday period, primary market activity is limited. This is especially prominent in [...]
An employee-owned financial services provider focused on the Debt Capital Markets.
An employee-owned financial services provider focused on the Debt Capital Markets.
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ABN 31 164 148 467 ‧ Important Information
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
