Rising rates emphasise growing appeal of Kiwi dollars

By Nathan Collins
24 Jul 2014

Yield starved investors are showing growing interest in picking up New Zealand dollar paper, looking to stock up on bonds denominated in the currency of the only developed economy enjoying rising interest rates. Rabobank and Commonwealth Bank of Australia both sold Eurobonds in the currency this week, drawing attention from institutional investors as well as the retail buyers that normally dominate the asset class.

The deals buck the trend of issuers offering maturities longer than five years to lure investors on the hunt for yield. Rising interest rates in New Zealand dollars mean issuers can offer attractive yields, even at lower maturities.

Deutsche Bank and Rabobank priced the NZ$100m ($86.7m) four year ...

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