Reduced credit spreads in New Zealand

Philip Bayley
In New Zealand, Reuters reported that both Manukau and Waitakere City Councils tapped the corporate bond market last week. Manukau added NZ$14 million and NZ$30 million to its September 2013 and 2015 lines respectively, while Waitakere issued NZ$150 million of October 2010 bonds at a spread of 120 basis points over swap.

Credit spread contraction is also notable in the New Zealand market. Waitakere City Council issued NZ$25 million of three-year bonds in April at a spread of 170 bps to swap.

This issuance took total issuance for the month of September to NZ$834 million but did not lead to a quarterly record. The quarterly record stands at NZ$4.7 billion and was achieved in the second quarter of 2008.