John Weavers is a Senior Report at International Financing Review based in Sydney where he covers the Australian and New Zealand bond and securitisation markets. John joined IFR in London in 2004 as senior reporter responsible for emerging markets, before transferring Down Under in 2011. Before IFR, he was a senior reporter for Informa Global Markets, having previously written for the Economist Intelligence Unit and Latin American Monitor. John has a BA in Economics from Warwick University and a MSc in Economics of Latin America from Queen Mary College, University of London.
Australia’s four major banks may need to issue up to A$83bn (US$60.5bn) of new Tier 2 capital after regulators proposed an increase in total capital requirements.
Troubled Australian financial group AMP raised A$250m (US$182m) last Thursday from a Tier 2 note offering to help refinance the soon-to-be-called A$325m retail AMP Notes 2, but it certainly had to pay up for the privilege.
Australian bank issuance is about to pick up, with three majors coming out of blackout and several subordinated notes due to be refinanced, but longer-term supply is on a downward path as the sector grapples with a housing market slump, tighter regulations and non-bank competition.