Bank funding costs on the charge

Monday, 9 November 2015

The highlight of the week in the debt capital markets was ANZ’s tier two capital issue, which was launched without a desired volume being specified but came with a very juicy indicative credit spread of 270 basis points. This was well wide of comparable secondary market levels of 220 bps and a fair market value assessment of 240 bps.

…Offshore, Westpac (rated AA-) provided more evidence of ever widening credit spreads for the major banks.

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.