ABCs soar in debt market rankings

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Anthony Hermann, Executive Managing Director, Global Markets for CBA, pushed to connect bond transactions with global investors.

The seasoned banker, who previously worked on secured debt bonds for JPMorgan in New York in the aftermath of the financial crisis, pushed to tie Australian government and corporate bond deals with short-yielding international investors.

“We have a syndication function that used to be one or two people and now has 13 people around the world and all they do is talk to investors about the product every day. This is their mandate, ”he said.

The results also show a clear increase for Mr Hermann’s former employer. JPMorgan’s Australian arm more than doubled its market share over the year, a bigger jump than any other bank. The increase took the New York-based company up two spots to move up to eighth place in the rankings.

The biggest corporate contracts during the period included two from Scentre Group, a real estate giant, with a combined value of $ 6.3 billion, and a $ 2.6 billion bid from NBN. , a telecommunications company.

The bank scramble comes against a backdrop of burgeoning debt issuance in Australia and around the world, as companies lock in cheap borrowing costs and governments fund fiscal and monetary stimulus programs unprecedented.

Record interest rates since the Reserve Bank of Australia set the cash rate at 0.1% in November and $ 200 billion in quantitative easing have reduced borrowing costs, extending a lifeline to companies hard hit by the pandemic.

According to data from Refinitiv, the $ 248.9 billion raised in Australian debt markets in the first full fiscal year since the COVID-19 strike is almost 50% more than the amount raised the previous year.

Cheap borrowing has spurred a M&A boom, as companies take on debt to fuel takeovers and expand into new industries through buyouts.

In equity capital markets, UBS maintained its pole position with $ 6.7 billion raised during the year, down a third from last year but still a long way from Goldman Sachs, second in over $ 800 million, according to Dealogic data.

“The pipeline is strong and we have had a very busy first half across the market,” said Richard Sleijpen, Head of Equity Markets at UBS Australia.

“There have been some big deals, including PEXA, the biggest of the year, but also a lot in the smaller part of the market,” he said.

The year was marked by a sharp decline for Macquarie, which fell to fifth place after coming in second last year after its market share fell from 17% to 5%, according to Dealogic.

The Sydney-based investment bank is mired in the fallout from the Nuix listing, one of the biggest of 2020, which has caught the attention of the market regulator.

Shares of Nuix, a tech company, are down more than 80% from the January peak and are less than half the price offered to investors during the December IPO.

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