FOMC dampens bank bond market
Activity in the domestic corporate bond market was very quiet last week in the lead up to the US Federal Reserve's Federal Open Market Committee meeting on Wednesday, and then, subsequently, in shock as the Fed did not commence tapering quantitative easing, as had been widely expected.The Australian branch of Rabobank (rated AA-) was the only issuer in the wholesale market. Coming ahead of the FOMC meeting, the bank sold A$500 million of five-year floating rate notes priced at 113 basis points over bank bills.For retail investors there was talk of Bendigo and Adelaide Bank getting ready to launch a subordinated tier two-note issue. The bank is thought to be seeking to raise a minimum of A$150 million.Commonwealth Bank undertook a two-tranche issue, selling US$1 billion of five-year bonds, priced at a margin of 90 bps over US Treasury bonds, and US$2 billion of three-year floating rate notes, priced at 50 bps over Libor.ANZ New Zealand raised €500 million for five years. With bids received totalling €1.0 billion, the bonds were priced at 23 bps over mid-swaps, after, initially, being marketed in the high 20s.The bank sold €750 million of covered bonds last September and paid a spread of 43 bps for five year funds.ANZ (AA-) was back in the Uridashi market, raising A$57.2 million, NZ$50.7 million, US$35.8 million and 168 million Mexican pesos. The first three tranches have five year terms to maturity and will pay coupons of 3.99 per cent, 4.8 per cent and 1.81 per cent, respectively. The Mexican pesos equate to A$13.9 million and will pay a coupon of 2.78 per cent per annum for four years.