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Unlike many other nations, Australia’s non-government bond market is significantly larger than its government bond market, reflecting our low public debt. The Australian non-government bond market can be divided into four main categories:
1) Australian financial institutions
2) Australian corporate’s (non-financials)
3) Long-dated asset-backed securities (e.g. bonds tied to pools ofhome mortgages), and
4) Australian dollar denominated bonds issued by non-residents, known as “Kangaroo” bonds.
Almost all Australian corporate bonds have an investment grade credit rating by one of the major ratings agencies (Moody’s, Standard & Poor’s or Fitch) and most maintained their credit rating during the global financial crisis.
In contrast to the global experience, there have been only a limited number of credit rating downgrades or defaults in the Australian bond market in recent years. The rapidly growing market in Australia has broadened the opportunity set for wholesale investors, but access is still limited to smaller investors. While Australian Commonwealth and State Government bonds can be purchased by retail investors directly from government funding authorities, corporate bonds usually trade in minimum amounts of $500,000. The NAB Access Bond Service provides an opportunity to invest directly in selected corporate bonds for a minimum of $100,000 per bond, making these bonds more readily available to clients, although smaller bond parcels will generally be less liquid than parcels over $500,000.
|08/06/2021||S&P Global Ratings revised outlook on Australia to stable and affirmed at "AAA" (Foreign Currency LT) credit rating|
|08/06/2021||S&P Global Ratings revised outlook on Australia to stable and affirmed at "AAA" (Local Currency LT) credit rating|
|09/04/2021||Upcoming issue: Australian government|
|23/02/2021||Fitch Ratings affirms Australia at "AAA" (LT Int. Scale (foreign curr.) credit rating); outlook negative|
|23/02/2021||Fitch Ratings affirms Australia at "AAA" (LT Int. Scale (local curr.) credit rating); outlook negative|