Attractive cross-currency basis swap allows SSAs to fill Kanga pouch

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By Frank Jackman
10 Mar 2020

A window for Kangaroo issuance opened this week, as a positive move in the Australian dollar/euro basis swap helped rouse a slumbering market that had not seen a deal for a fortnight. In spite of unstable conditions, SSAs entered the market on Monday and Tuesday, with a trio of regular borrowers tapping six lines for a combined A$575m ($364m).

With volatility clouding global markets, the New York Federal Reserve imposed a 50bp emergency cut on US rates last week. That, and the recent collapse in US Treasury yields, opened a window for Kangaroo borrowing.

“The rates in Australia are higher than in the US, which is a situation ...

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