Kangaroo bond issuance in Australia

Jonathan A. Batten; Warren P. Hogan; Peter G. Szilagyi

Kangaroo bond issuance in Australia

Jonathan A. Batten, Warren P. Hogan, Peter G. Szilagyi

Macquarie Graduate School of Management

Research output: Chapter in Book/Report/Conference proceeding › Conference proceeding contribution

Abstract

We explore the recent development of the foreign bond market-termed Kangaroo Bonds in Australia. Initially a perspective is provided on the scale and scope of this market with particular attention paid to the characteristics of issuers. Overwhelmingly this market is high-credit quality and comprises sovereign, supranational or major financial institutions. Investors appear to have a preference for simple fixed rate pricing structures, which require issues to then swap bond proceeds into the currency and coupon type of choice. Consequently, the highly liquid Australian foreign exchange and derivatives markets, which easily accommodate risk transformation, appear as an important facilitator to foreign and ultimate local bond market development. Impediments to market development and implications for other markets are considered.

Original language	English
Title of host publication	Papers from the 13th Melbourne Money and Finance Conference
Subtitle of host publication	recent developments in Australian debt markets
Place of Publication	Melbourne
Publisher	Melbourne Centre for Financial Studies
Pages	1-26
Number of pages	26
Publication status	Published - 2008
Event	Melbourne Money and Finance Conference (13th : 2008) - Melbourne Duration: 2 Jun 2008 → 3 Jun 2008

Conference

Conference	Melbourne Money and Finance Conference (13th : 2008)
City	Melbourne
Period	2/06/08 → 3/06/08

Bibliographical note

Previously published in the proceedings of the AsianFA/FMA 2006 Conference

Keywords

Australia
Asia-Pacific
financial market development
bond markets
Kangaroo bonds
foreign bonds

Access to Document

http://www.melbournecentre.com.au/MMFC2008.html

Cite this

@inproceedings{5213125546954ccdb10405a493d42cf5,

title = "Kangaroo bond issuance in Australia",

abstract = "We explore the recent development of the foreign bond market-termed Kangaroo Bonds in Australia. Initially a perspective is provided on the scale and scope of this market with particular attention paid to the characteristics of issuers. Overwhelmingly this market is high-credit quality and comprises sovereign, supranational or major financial institutions. Investors appear to have a preference for simple fixed rate pricing structures, which require issues to then swap bond proceeds into the currency and coupon type of choice. Consequently, the highly liquid Australian foreign exchange and derivatives markets, which easily accommodate risk transformation, appear as an important facilitator to foreign and ultimate local bond market development. Impediments to market development and implications for other markets are considered.",

keywords = "Australia, Asia-Pacific, financial market development, bond markets, Kangaroo bonds, foreign bonds",

author = "Batten, {Jonathan A.} and Hogan, {Warren P.} and Szilagyi, {Peter G.}",

note = "Previously published in the proceedings of the AsianFA/FMA 2006 Conference; Melbourne Money and Finance Conference (13th : 2008) ; Conference date: 02-06-2008 Through 03-06-2008",

year = "2008",

language = "English",

pages = "1--26",

booktitle = "Papers from the 13th Melbourne Money and Finance Conference",

publisher = "Melbourne Centre for Financial Studies",

}

Batten, JA, Hogan, WP & Szilagyi, PG 2008, Kangaroo bond issuance in Australia. in Papers from the 13th Melbourne Money and Finance Conference: recent developments in Australian debt markets. Melbourne Centre for Financial Studies, Melbourne, pp. 1-26, Melbourne Money and Finance Conference (13th : 2008), Melbourne, 2/06/08. <http://www.melbournecentre.com.au/MMFC2008.html>

Kangaroo bond issuance in Australia. / Batten, Jonathan A.; Hogan, Warren P.; Szilagyi, Peter G.
Papers from the 13th Melbourne Money and Finance Conference: recent developments in Australian debt markets. Melbourne: Melbourne Centre for Financial Studies, 2008. p. 1-26.

Research output: Chapter in Book/Report/Conference proceeding › Conference proceeding contribution

TY - GEN

T1 - Kangaroo bond issuance in Australia

AU - Batten, Jonathan A.

AU - Hogan, Warren P.

AU - Szilagyi, Peter G.

N1 - Previously published in the proceedings of the AsianFA/FMA 2006 Conference

PY - 2008

Y1 - 2008

N2 - We explore the recent development of the foreign bond market-termed Kangaroo Bonds in Australia. Initially a perspective is provided on the scale and scope of this market with particular attention paid to the characteristics of issuers. Overwhelmingly this market is high-credit quality and comprises sovereign, supranational or major financial institutions. Investors appear to have a preference for simple fixed rate pricing structures, which require issues to then swap bond proceeds into the currency and coupon type of choice. Consequently, the highly liquid Australian foreign exchange and derivatives markets, which easily accommodate risk transformation, appear as an important facilitator to foreign and ultimate local bond market development. Impediments to market development and implications for other markets are considered.

AB - We explore the recent development of the foreign bond market-termed Kangaroo Bonds in Australia. Initially a perspective is provided on the scale and scope of this market with particular attention paid to the characteristics of issuers. Overwhelmingly this market is high-credit quality and comprises sovereign, supranational or major financial institutions. Investors appear to have a preference for simple fixed rate pricing structures, which require issues to then swap bond proceeds into the currency and coupon type of choice. Consequently, the highly liquid Australian foreign exchange and derivatives markets, which easily accommodate risk transformation, appear as an important facilitator to foreign and ultimate local bond market development. Impediments to market development and implications for other markets are considered.

KW - Australia

KW - Asia-Pacific

KW - financial market development

KW - bond markets

KW - Kangaroo bonds

KW - foreign bonds

M3 - Conference proceeding contribution

SP - 1

EP - 26

BT - Papers from the 13th Melbourne Money and Finance Conference

PB - Melbourne Centre for Financial Studies

CY - Melbourne

T2 - Melbourne Money and Finance Conference (13th : 2008)

Y2 - 2 June 2008 through 3 June 2008

ER -

Kangaroo bond issuance in Australia

Abstract

Conference

Bibliographical note

Keywords

Access to Document

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Cite this