Capital trades the focus for Aussies in 2021

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By Frank Jackman
21 Jan 2021

Westpac kicked off 2021’s Australian financials market on Thursday by launching a new tier two bond. Aussie borrowers are expected to focus on capital trades this year in order to meet their total loss-absorbing capacity (TLAC) requirements with tier two debt.

The borrower started the pricing for the self-led 10 year non-call five tier two deal with initial guidance in the 165bp area over three month BBSW/semi-quarterly asset swaps, for floating and/or fixed rate bonds.

An A$1.25bn ($970m) floating rate deal was later launched at a spread of 155bp ...

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