Kangaroo bond issuance in Australia

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

Research output: Chapter in Book/Report/Conference proceedingConference 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 languageEnglish
Title of host publicationPapers from the 13th Melbourne Money and Finance Conference
Subtitle of host publicationrecent developments in Australian debt markets
Place of PublicationMelbourne
PublisherMelbourne Centre for Financial Studies
Pages1-26
Number of pages26
Publication statusPublished - 2008
EventMelbourne Money and Finance Conference (13th : 2008) - Melbourne
Duration: 2 Jun 20083 Jun 2008

Conference

ConferenceMelbourne Money and Finance Conference (13th : 2008)
CityMelbourne
Period2/06/083/06/08

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

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