At the same time, demand for credit contracted as businesses continue to be cautious with regard to investment decisions. This has contributed to further pressure on loan margins and created increased competitive tension in the loan markets.
The prospect of increased costs of derivatives resulting from regulatory changes has resulted in the Australian capital markets being even more attractive to domestic borrowers as evidenced by the recent influx of BBB rated issuance.
- Subdued loan growth creating increasing competition from lenders resulting in a positive environment for borrowers – however lack of business confidence limits activity and pipeline.
- Bond market awakening, especially for BBB corporates.
- Wesfarmers sale-and-lease back solution to capital management.
- Hedging changes on the horizon and their potential impact on corporates.