Funding Strategy principles and objectives
NZDM's core Funding Strategy principles are transparency, consistency and even-handedness. The objective of the Funding Strategy is to minimise the Crown's borrowing costs over the long-term with due consideration to risk, while ensuring ongoing access to debt funding markets.
The Funding Strategy is aimed at balancing three key goals; considering the overall structure of the Crown's balance sheet, capturing and stimulating investor demand, and promoting well-functioning and liquid NZGS markets.
For the NZGB market, this objective is achieved by taking a structured, long-term approach, rather than a short-term tactical approach to funding activities. The aim is to reduce uncertainty or illiquidity premiums associated with NZGBs, by clearly communicating future actions in advance.