Daily Flows
- We saw continued flows into the recent Newcastle Greater issue yesterday with the margin of +162 in line with initial trading in the secondary market last week.
- Macquarie Bank has this morning announced an upcoming Subordinated Notes (10 year, 5 year non-call) deal, expected to price in the near future.
- Stand out 5 year rates from Rabobank (5.20%), plus 1 year rates of 5.18% from A1/A and A2/BBB+ names, attracted flows in the term deposit space.
Heads is the Call as ANZ Acquisition of Suncorp Given Green Light
- ANZ’s $4.9 billion takeover of Suncorp has been given the green light by the Australian Competition Tribunal, which ruled in favour of the deal after the ACCC rejected it last year.
- The tribunal found the acquisition represented a net public benefit and would not substantially lessen competition in home, business, or agribusiness lending.
- This was partially due to the assessment by the tribunal of a “minimal” increase to ANZ’s market share as a result of the deal, and partially due to the emergence of Macquarie as a genuine competitor in the residential mortgage space.
- Bendigo and other regional banks shared their concern after the decision, claiming it would “lessen competition and leave customers & communities worse off.”
- Elsewhere, today’s wage price index data will provide further clues about the direction of Australian inflation. Surveyed economists project a 4.1% annual increase, 0.1% higher than the same point last year, but a decline of 0.4% to 0.9% QoQ in line with softer recent prints.
