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Banks triple bond issuance

by Staff Reporter7 minute read
The Adviser

Australia’s Big Four banks have issued $14.8 billion in bonds so far this year to meet increased demands from businesses and borrowers – three times the amount seen at the same point in 2007.

The increase has been driven by the collapse of the Australian credit markets as companies and borrowers that would have previously used non-bank lenders look back to the banks for funding.

“Banks have had to raise their funding to match the additional business flow [from corporate and non-bank lenders],” Michael Bush, National Australia Bank’s head of income credit research, told the The Australian Financial Review today.

So far CBA has issued $5.2 billion in bonds, followed by Westpac ($3.5 billion), NAB ($3.3 billion) and ANZ ($2.8 billion).

Published: 25-06-08

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