Aussie bond boom here to stay?

Japan’s SSAs bounce back as funding conditions stabilise

Japan’s major government-backed borrowers issued well-supported international bonds during the fiscal year that ended in March, after putting the previous torrid year behind them. Navigating an increasingly volatile rates environment was not easy, but Japan’s SSAs made transactions successful by prioritising investor communication, transparency, and selling environmental, social and governance linked bonds. GlobalCapital brought together some of the country’s leading SSA issuers and deal managers for a roundtable in mid-March, to discuss their approach to fundraising in the past year, the likely implications of a change in the Bank of Japan’s monetary policy and the increasingly mainstream nature of ESG bonds.

Rashmi Kumar, May 01, 2024

Japan’s landmark transition bond opens debate for more

Japan’s environmental, social and governance bond market took a big leap forward this year when the government issued the world’s first sovereign transition bond, with much success. The journey was long and involved collaboration across ministries, as well as plenty of behind-the-scenes communication with global and domestic investors. But the deal has made the country a clear frontrunner in what is set to be an arduous journey for the world in its transition away from fossil fuels to cleaner energy sources. GlobalCapital brought together speakers from the Ministry of Finance and Ministry of Economy, Trade and Industry — as well as other issuers, investors and dealmakers — for a roundtable in March to talk about what’s next for Japan’s ESG market and how its transition bond could serve as a template for other countries.

Rashmi Kumar, May 01, 2024

Polls and Awards

US risk transfer market finally opens up

The risk transfer market has been growing for years, with new jurisdictions, new collateral types, and more issuers waking up to the potential of the tool. But while investors welcomed debut deals from Canada, Japan, and Mexico, there was always one country which was the biggest prize of all. Last year, finally, the US stirred for real, with a deal between JP Morgan and PGGM hopefully firing the starting gun on a major market expansion. Owen Sanderson reports.

Owen Sanderson, July 14, 2021

Polls and Awards

Yield hunt pushes investors towards esoterics, private ABS

The rapid economic recovery from the pandemic is causing yields to tighten sharply in the securitization market, pushing investors to explore more esoteric ABS sectors and even private credit. Jennifer Kang reports.

Jennifer Kang, July 14, 2021

Polls and Awards

CLOs: can the market handle the heat?

US CLO deals are flooding into the market at a record pace, stretching bankers, lawyers and rating agencies to the limit and challenging the capacity of investors to absorb the heavy volume. There are no signs of slowing down but the oversupply of deals, alongside refinancings and resets, might eventually weigh on spreads, increase manager tiers and cause indigestion.

Paola Aurisicchio, July 14, 2021

Polls and Awards

Team strength the key factor in ABS

As part of GlobalCapital’s awards survey, we asked securitization participants what they wanted from their banks. The results emphasized the importance of market knowledge, more than anything else. Other important qualities sought after included strength of the team and their ability to deal in difficult market conditions, regardless of sector. League table positions mattered less. We also asked you what your outlook was for the second half of 2021. Most expect ABS, RMBS and CMBS spreads to remain stable, but there’s also a sizable number of folks who believe spreads may either tighten or widen slightly. The only exception was expectation for CLO spreads, which very few expect will widen. A big thank you to those who participated in the survey. We’d welcome any suggestions on how we can improve next year!

GlobalCapital, July 14, 2021