BNZ's Christie sees subdued demand for guaranteed bank bonds
23rd Feb 09, 4:01pm
BNZ Chief Financial Officer Ken Christie believes foreign fund demand for New Zealand government guaranteed bank bonds may be subdued because many of those funds that would buy sovereign guaranteed bonds had already filled up with issues from the United States and Europe. Christie told interest.co.nz foreign fund managers were more likely to buy unguaranteed bank bonds. "These funds are saying that with the massive volume from European and US market, our sovereign funds are full of government backed debt from a sovereign risk view," Christie said. "Instead they're looking to buy our bonds on a non-guaranteed basis," he said. BNZ would continue to look at issuing government guaranteed (and non Government guaranteed) term debt offshore, but was in no rush. "We don't need the cash in a hurry," he said. "We are well positioned and will take advantage of opportunities as they arise." * This article was first published earlier today in our daily subscription newsletter for the banking and finance industries. The email costs NZ$365 per annum and carries exclusive news and analysis for New Zealand banking and finance industry executives, regulators and investors. Sign up for a free trial here.