Supporting information:

Series description: New Zealand wholesale debt securities held for non-residents

Series Descriptions

Commercial paper

Discounted debt instruments, short-term (typically <1 year), that have been issued by private sector firms.

Corporate bonds

Issues of New Zealand dollar denominated debt (bonds) on a New Zealand register by private sector entities (including banks). Issuers can be either domestic or non-domestic.

Domestic

Issues of New Zealand dollar denominated debt on a New Zealand register by New Zealand incorporated entities.

Government bonds

New Zealand Government bonds are denominated in New Zealand dollars. There are two categories of New Zealand Government bonds. The first category has a fixed interest coupon paid semi-annually in arrears. The bonds are redeemable at par on maturity. The other category is inflation-indexed bonds (IIB).

Government bonds nominal value

The nominal value (or face value) of bonds held for non-residents recorded by bond maturity.

Government bonds nominal value as a percentage of the net amount in the market

Government bonds held for non-residents, as a percentage of the Government bonds available in the market. The bonds available in the market do not include the bonds held by the RBNZ and the Earthquake Commission.

Government bonds nominal value as a percentage of the total value of the loans

Government bonds held for non-residents, as a percentage of the total bonds on issue. This includes the bonds held by the RBNZ and the Earthquake Commission.

Inflation-indexed bonds

New Zealand Government inflation-indexed bonds (IIB) are denominated in New Zealand dollars with a fixed coupon paid quarterly in arrears. On maturity, the principal and the indexed component of the indexed bonds are redeemable. In respect of the Indexed bonds maturing on 15 February 2016, the index component means the adjustment, from 15 November 1995, to the principal due to the change in the CPI.

Local authorities

These include (but not restricted to) city councils, borough councils, and other territorial authorities.

Non-domestic

Issues of New Zealand dollar denominated debt on a New Zealand register by non-New Zealand incorporated entities (such issues are sometimes referred to as "Kauri" bonds).

Other government

This includes other New Zealand enterprises majority owned by the Government (excludes State owned enterprises and local authorities).

Private sector

This includes New Zealand companies, financial institutions and producer boards. These are organisations other than the Treasury, RBNZ and “Other government”.

Registered certificates of deposits (RCDs)

Discounted securities that are short-term (<1 year) - the majority of which are issued by banks and have taken the place of bank bills.

Repurchases and reverse repurchases

Arrangements under which one party sells a security at a specified price to another party with an agreement that the security will be repurchased at a fixed price on a specified future date. The party which sells the security upon entering the arrangement is said to be "Repurchasing" the security. The party which buys the security upon entering the arrangement is said to be "Reverse repurchasing" the security.

State Owned Enterprises (SOEs)

The SOEs borrow in their own names and on their own credit, in most cases without a guarantee or other form of credit support from the Government. SOEs have been informed that Government policy requires that they disclaim in loan documentation the existence of such guarantees or credit supports.

A current list of SOEs can be accessed outside this website from the Crown Company Monitoring Unit website.

Treasury bills

New Zealand Government Treasury bills are denominated in NZ dollars, are sold at a Discount to the nominal value and carry no coupon. The bills are redeemable at par on maturity. Treasury bills are normally issued with a maturity date between one month and one year.

Treasury bills nominal value as a percentage of the net amount in the market

Treasury bills held for non-resident holdings, as a percentage of total Treasury bills available in the market. The bills available in the market do not include any Treasury bills held from time to time by the RBNZ and the Earthquake Commission. The total also excludes the amount held by the New Zealand Future Fund from November 2008 through April 2009.

Definitions

Banking day

Monday to Friday excluding public holidays.

Coupon

Regular interest payment on a security (such as a bond). Coupon payments are typically annual or semi-annual.

Discount

The discount is the difference between the present value and the nominal value.

Interest bearing securities

These are written promissory agreements, whether marketable or not, in which one party promises to pay a stated sum on demand or on a specified date to the legal holder of the document. They may also involve a promise to pay stated interest at specified intervals over the term of the bond. Alternatively, they may be issued and traded at a Discount to their nominal value.

These include: Government bonds, Treasury bills, bills of exchange, commercial paper (including eurocommercial paper), certificates of deposit, debentures, convertible notes, and medium term notes issued by private placement.

Outright holdings (nominal holdings)

Securities held outright by the owner either directly or through an agent.

Nominal value

The nominal value (also known as the “face value”) appears on the face of a document recording the entitlement, generally a certificate or bond. It is the amount to be repaid at maturity.

Security types

All securities reported are wholesale market instruments: New Zealand Government bonds (with the exception of the Feb 2016 bonds which are inflation-indexed bonds), Treasury bills, Corporate bonds, Commercial paper or Registered certificates of deposit (RCDs)