Banks tap markets as funding cost rocket pauses

Monday, 16 May 2016

From Phil Bailey’s ADCM Review:

Westpac (AA-) got the week underway, raising a total of US$4.0 billion in the US s144A market and in the same market, Commonwealth Bank (AA-) sold US1.0 billion of bonds and ANZ (AA-) raised US$1.5 billion of Tier 2 capital. In the Euromarket, nab (AA-) raised a total of €1.75 billion in the form of senior debt, and also sold SGD450 million of Tier 2 capital.

Staying in the Euromarket, G8 Education (NR) sold SGD270 million of three year bonds, which according to nab, swapped back into Australian dollars at a margin of 418bps over bank bills.

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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.