Government-owned South Australian Asset Management Corp, which manages and realizes around AUD6 billion (USD3.78 billion) of assets and liabilities for the state, is looking to tap the interest rate swap market to convert several planned debt issues. Bruno Bellon, portfolio manager in Adelaide, said SAAMC will issue more than AUD25-50 million in the coming months because several of its outstanding bonds are set to mature. The corporate's fixed income portfolio is approximately AUD3.5 billion.
SAAMC will likely swap the fixed rate debt into a synthetic floating rate issue to match its floating rate loan book, according to Bellon.
As for counterparties, Bellon said, "We use everybody," noting that the asset manager transacts with prominent domestic banks as well as foreign houses.
