Asia Pacific

The Australian dollar bond market’s growth has propelled it to be the third most important funding currency for some international bond issuers. Its ability to offer investor diversification and arbitrage funding is attracting an increasing number of issuers from spread-conscious SSAs to banks and companies seeking strategic capital, write Sarah Ainsworth and Atanas Dinov

Big US data dump and three central bank monetary meetings set for this week

‘Exciting’ cross-market relative value opportunity on offer as issuers aspire to become regular euro visitors

Semi-government issuer intends to build curve after ‘landmark’ first trade in market that offers both duration and diversification

◆ Singaporean bank issues first sterling covered since September 2024 ◆ Places £750m on £850m order book ◆ Bankers view deal as flat or just inside fair value

SSA issuers extend their hot run in the private market, crowding into the short end of the curve

◆ More foreign capital deals in Australian dollars are 'definitely' expected next year ◆ Offshore issuance to institutional investors preferred ◆ BNPP make substantial savings versus US dollar levels

Market is particularly interesting for banks doing capital trades

◆ Singapore bank returns after lengthy absence ◆ Price tightened from 34bp area ◆ Lead banker said ‘one or two deals left in 2025’

Six covered bonds were issued in three days this week but there is uncertainty over the pipeline from here

◆ Book peaks at almost four times covered ◆ No worries over repeat visits ◆ Chorus offers rare Kiwi corporate paper

◆ Aussie lender places second covered in a week ◆ Order book passed €4bn by late morning ◆ Bankers saw 36bp at or just inside fair value