TY - JOUR
T1 - The Role of Foreign Bond Issuance
T2 - The Case of Australia
AU - Batten, Jonathan A.
AU - Hogan, Warren P.
AU - Szilagyi, Peter G.
PY - 2011/3
Y1 - 2011/3
N2 - We examined the recent development of the foreign bond-termed Kangaroo bond-market in Australia. Overwhelmingly, issuers in this market are of high credit quality and comprise sovereign, supranational and major international financial institutions. Local institutional investors have a preference for simple, fixed-rate pricing structures, with foreign issuers reliant upon converting their Australian dollar-denominated bond proceeds into the currency and coupon type of choice using cross-currency swaps. The Kangaroo bond issuers provide a natural counterparty to Australian residents issuing in foreign currency in offshore markets, where cross-currency swaps allow them to easily convert their proceeds into Australian dollars.
AB - We examined the recent development of the foreign bond-termed Kangaroo bond-market in Australia. Overwhelmingly, issuers in this market are of high credit quality and comprise sovereign, supranational and major international financial institutions. Local institutional investors have a preference for simple, fixed-rate pricing structures, with foreign issuers reliant upon converting their Australian dollar-denominated bond proceeds into the currency and coupon type of choice using cross-currency swaps. The Kangaroo bond issuers provide a natural counterparty to Australian residents issuing in foreign currency in offshore markets, where cross-currency swaps allow them to easily convert their proceeds into Australian dollars.
UR - http://www.scopus.com/inward/record.url?scp=79952091845&partnerID=8YFLogxK
U2 - 10.1111/j.1467-8462.2010.00619.x
DO - 10.1111/j.1467-8462.2010.00619.x
M3 - Article
AN - SCOPUS:79952091845
SN - 0004-9018
VL - 44
SP - 36
EP - 50
JO - Australian Economic Review
JF - Australian Economic Review
IS - 1
ER -