UBS AT1 surprise lays open Kanga possibilities

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By Frank Jackman
22 Aug 2019

Market participants expect more banks will now want to print Kangaroos after investors on a search for yield poured into UBS's additional tier one (AT1) deal on Tuesday. The syndication, which surprised those involved after it managed to shave 75bp off its initial pricing guidance and attract A$4bn ($2.71bn) of orders, suggested a market ripe for a deal spree.

UBS's deal followed one by BNP Paribas last month.

“It’s possible we could see future AT1 Kangaroo issuance,” said Phil Miall, director of credit at the Queensland Investment Corporation.

“BNP Paribas and UBS are established issuers in the Aussie market through their senior unsecured funding. Both are ...

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