The Role of Foreign Bond Issuance: The Case of Australia

Batten, JA; Hogan, WP; Szilagyi, PG

The Role of Foreign Bond Issuance: The Case of Australia

Batten, JA Hogan, WP Szilagyi, PG

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Publication Type:: Journal Article
Citation:: Australian Economic Review, 2011, 44 (1), pp. 36 - 50
Issue Date:: 2011-03-01

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Field	Value	Language
dc.contributor.author	Batten, JA	en_US
dc.contributor.author	Hogan, WP	en_US
dc.contributor.author	Szilagyi, PG	en_US
dc.date.issued	2011-03-01	en_US
dc.identifier.citation	Australian Economic Review, 2011, 44 (1), pp. 36 - 50	en_US
dc.identifier.issn	0004-9018	en_US
dc.identifier.uri	http://hdl.handle.net/10453/29513
dc.description.abstract	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. ©2011 The University of Melbourne, Melbourne Institute of Applied Economic and Social Research.	en_US
dc.relation.ispartof	Australian Economic Review	en_US
dc.relation.isbasedon	10.1111/j.1467-8462.2010.00619.x	en_US
dc.subject.classification	Economics	en_US
dc.title	The Role of Foreign Bond Issuance: The Case of Australia	en_US
dc.type	Journal Article
utslib.citation.volume	1	en_US
utslib.citation.volume	44	en_US
utslib.for	1402 Applied Economics	en_US
utslib.for	14 Economics	en_US
dc.location.activity	Pafos, Cyprus
pubs.embargo.period	Not known	en_US
pubs.organisational-group	/University of Technology Sydney
pubs.organisational-group	/University of Technology Sydney/Faculty of Business
utslib.copyright.status	closed_access
pubs.issue	1	en_US
pubs.publication-status	Published	en_US
pubs.volume	44	en_US

Abstract:

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. ©2011 The University of Melbourne, Melbourne Institute of Applied Economic and Social Research.

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10453/29513