December saw the seventh consecutive monthly net redemption "“ NZ$1.6 billion. NZ$707 million of uridashi bonds were issued, compared with $2.3 billion maturing (of which $747 million were uridashi and NZ$1.6 billion were eurokiwi/global). There was no issuance of NZD eurokiwi or global bonds in December. For the whole of 2008, $16.4 billion in bonds matured, and only $11.3 billion were issued, leaving a net $5.1 billion that were redeemed. Eurokiwi/global issuance has declined, relative to uridashi in recent months, with only four issues totalling $700 million since May 2008. For the whole of 2008, only 25% of the issues were eurokiwi. "Our concern is uridashi appetite could soon come under similar pressure," said Imre Speizer, Currency Strategist at Westpac Institutional Bank. "In Q1 2009, NZ$4.6 billion will mature, but there is only one deal in the pipeline "“ a NZ$206 million Uridashi for IFFIm arranged by Daiwa. Lower relative NZD yields, and Japanese funding pressures, point to future outflows from this asset class," he said.
Maturing uridashi weighs on currency
Maturing uridashi weighs on currency
31st Dec 08, 3:57pm
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