Market Notice No: 202104
Date:12 November 2021
Early in 2021, the New Zealand Financial Markets Association (NZFMA) consulted with stakeholders on a proposal to move Credit Market bonds from yield to clean price. As a result of that consultation, the NZFMA agreed to continue pricing vanilla bonds on a yield basis and non-vanilla bonds on a clean price basis. The definition for non-vanilla was also narrowed further to reduce the number of bonds that would move from yield to clean price.
The definition for non-vanilla bonds and FRNs appears in appendix 4 – Key Definitions, of the NZNG Closing Rate Methodology document which is available on the NZFBF website. The current list of non-vanilla bonds is:
| Issuer | Coupon | Maturity | ISIN |
|---|---|---|---|
| Bank of New Zealand | 4.261 | 03 Feb 2023 | NZBCBDT004C1 |
| National Australia Bank Limited | 5.590 | 25 Jul 2023 | NZNABDT001C5 |
| ASB Bank | 5.250 | 15 Dec 2026 | NZABBDG002C2 |
| Chorus New Zealand Limited | 4.350 | 06 Dec 2028 | NZCNUDT003C6 |
| Kiwibank Limited | 2.360 | 11 Dec 2030 | NZKIWD1230L2 |
| Housing New Zealand Limited | 2.500 | 20 Sep 2040 | NZHNZD0940L6 |
| Insurance Australia Group Limited | 5.150 | 15 Jun 2043 | NZIAGDT003C3 |
The move from yield to clean price will commence from Monday 15 November. Yields will be available for a further four weeks on these bonds, to assist with transition, via the NZNG spreadsheet published by New Zealand Financial Benchmark Facility (NZFBF), a subsidiary of the NZFMA, at 4:51pm each business day. If you wish to subscribe to this spreadsheet, please contact helpdesk@nzfbf.org
For any other enquiries, please email or phone (+64 4 333 1387) John Groom, General Manager NZFBF.