Macquarie secures record demand for bonds

News Snapshot:

Macquarie’s book-build peaked at an astonishing $4.97 billion of demand, almost one billion more than the record ANZ issue in January, and multiples what Macquarie had secured in prior transactions. Reputation for parsimony This is despite the fact that Macquarie’s BBB rated Tier 2 bond had a one notch lower credit rating than ANZ’s BBB+ security, and paid exactly the same 195 basis point spread above the cash rate proxy, known as the bank bill swap rate. Macquarie’s floating-rate tranche provided an all-in interest rate of 6.3 per cent. Back in 2021, the same bond would have yielded only 1.6...