Fixed income investors were keen to get on board ANZ's latest sub debt deal in the US this week. Overnight Thursday, the bank raised US$800 million via a new issue of Basel III compliant Tier 2 10-year subordinated debt, which priced at 180 basis points over US Treasuries. "This was at the tight end of the 180 to 185 bps initial price talk range," NAB's credit analysts wrote in a note to clients yesterday. "The issue price looks to swap back to an AUD equivalent of roughly BBSW+218bps." The same NAB analysts compared ANZ's new notes, sold into the US markets with one of a similar size and tenor issued by Westpac on 14 March, which was sold into the domestic market. Westpac's Basel-III compliant A$1 billion 10-year Tier 2 sub debt floating rate notes were priced at 205bps over BBSW, and have traded as wide as 210 bps over BBSW this week, according to NAB. Fitch Ratings has assigned a rating of A+ to these notes, which can be called after five years, subject to approval by the Australian Prudential Regulatory Authority.New Basel III compliant Tier 2 issues include 'non-viability' clauses and are therefore rated below the issuing banks' respective ratings to reflect "below-average recovery prospects compared to senior unsecured instruments". For instance, Westpac's new Tier 2 notes were rated A+ by Fitch, one notch below the bank's overall AA- rating.