ANZ Credit Team Leaves Without Government Bond Sale – East & Partners

On January 31, 2025, the Australian and New Zealand Banking Group (ANZ) faced a setback as its top Singapore credit trading leaders resigned, causing the bank to announce informally that it will not be participating in any bond sales until further notice.

The decision came after ANZ’s esteemed credit trading unit revealed its plans to leave the bank. Sources from The Australian suggested that the team had been poached by their key rival, Standard Chartered. The departure of Ming Wo, Adam Hall, and Timothy Teh followed the exit of the unit’s head, Duncan Robinson. Speculations indicate that these resignations may be related to the 60 percent bonus cuts that senior bank executives had enforced across the unit.

This development comes at a time when government deficits have been on the rise, leading to a significant increase in bond issuance. For instance, Queensland exceeded expectations by selling A$41.9 billion in bonds in the financial year, which was A$9 billion more than originally forecast in the budget. Additionally, New South Wales increased its gross debt issuance to A$26.9 billion, and Victoria is preparing to provide an update on its budget with a forecasted debt of A$30.6 billion.

Meanwhile, the Australian Securities & Investments Commission (ASIC) has launched an investigation into ANZ’s markets team regarding allegations of market manipulation on its Sydney trading desk. In a separate development, the Australian Prudential Regulation Authority (APRA) imposed a A$250 million capital penalty on the bank due to “non-financial risks.” This penalty coincides with a strategic review of the bank being conducted by Oliver Wyman consultants as part of APRA’s supervision order.

In the midst of these challenges, ANZ announced the departure of CEO Shayne Elliott, who will be succeeded by former HSBC wealth head, Nuno Matos, in July.

An ANZ spokesperson clarified the bank’s current stance, stating, “While there is no specific mandate in place, we do not anticipate participating in any primary issuances for government or semi-government clients until the ASIC investigation is concluded. Nevertheless, we remain committed to supporting our customers in the secondary market.”

Overall, ANZ’s decision to abstain from bond sales and the ongoing investigations by ASIC and APRA have added strain to the bank’s operations. With key leaders resigning and regulatory scrutiny intensifying, ANZ faces a challenging road ahead as it navigates through these turbulent times.