Territory Stories

Northern Territory Treasury Corporation Annual report 2013-2014

Details:

Title

Northern Territory Treasury Corporation Annual report 2013-2014

Collection

Department of Treasury and Finance reports; Reports; PublicationNT

Date

2014

Description

Made available via the Publications (Legal Deposit) Act 2004 (NT).

Language

English

Subject

Northern Territory Treasury Corporation -- Periodicals; Finance, Public -- Northern Territory -- Periodicals

Publisher name

Dept. of Treasury and Finance

Place of publication

Darwin

ISSN

1324-9789

Copyright owner

Check within Publication or with content Publisher.

Parent handle

https://hdl.handle.net/10070/256369

Citation address

https://hdl.handle.net/10070/521143

Related items

https://hdl.handle.net/10070/521145

Page content

Northern Territory Treasury Corporation10 Figure 3: Interest Rate Exposure of Maturing Debt as at 30 June 2014 Trading Margin An important influence on trading margins is the perception of liquidity. The relatively small size of the Territorys borrowing program does not promote significant trading activity. As such, the borrowing margin is more a reflection of the liquidity premium demanded by institutional investors for supporting NTTCs bond issuances. The implied trading margin between a Territory Government-issued bond and an interpolated AAA-rated state government fixed interest security has improved significantly throughout the course of the financial year, declining by around 0.15percent. Figure 4 shows NTTCs borrowing margin relative to the Commonwealth and AAA-rated CFAs. Figure 4: Trading Margin 0 100 200 300 400 500 600 700 800 $M Financial Year Approved Band for Interest Rate Exposure to Maturing Debt 20 14 -1 5 20 15 -1 6 20 16 -1 7 20 17 -1 8 20 18 -1 9 20 19 -2 0 20 20 -2 1 20 21 -2 2 20 22 -2 3 20 23 -2 4 20 24 -2 5 20 25 -2 6 20 26 -2 7 20 27 -2 8 20 28 -2 9 20 29 -3 0 20 30 + 0 25 50 75 100 125 150 Basis Points NTTC margin to Australian Commonwealth Government Bonds (ACGB) NTTC margin to AAA-rated semi-government security AAA-rated semi-government security margin to ACGB 19 94 19 95 19 96 19 97 19 98 19 99 20 00 20 01 20 02 20 03 20 04 20 05 20 06 20 07 20 08 20 09 20 10 20 11 20 12 20 13 20 14