Asia View: Aussie issuers should stick closer to home

19 Jan 2012

Commonwealth Bank of Australia’s ground-breaking Aussie dollar covered bond deal is the story that everyone was waiting for. Its success disproves the conventional wisdom that euros and dollars are the only really liquid markets.

Until now Australian covered bonds have had a mixed reception. In November, when Westpac issued its inaugural deal in US dollars, the bond widened by as much as 40bp, dragging the rest the US dollar covered bond market with it.

The disappointment followed a year of anticipation of ...

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