Benchmark bond rates
(19 January 2012 – Australia) Commonwealth Bank of Australia (CBA) sold A$3.5 billion of five-year covered notes to yield more than 175 basis points over the swap rate this week, in the biggest ever offering of financial debt in the currency.
The Sydney-based bank sold A$500 million of three-year floating-rate notes at a 160 basis-point premium in December 2008.
Australia's government announced plans in December 2010 to end a ban on banks selling covered notes, which are typically lower-yielding and rated AAA because they are backed by a pool of mortgages.
Covered bond sales globally surged to €33 billion (A$41 billion) this month, from €15.5 billion in December as Europe's crisis dampens demand for all but the safest debt. Australia's parliament passed legislation allowing sales of the notes in October.
More than 90 investors bought Commonwealth Bank's fixed-rate bonds, while the floating-rate notes had more than 70 buyers, according to Simon Maidment, the lender's head of group funding.
Commonwealth Bank, the nation's biggest mortgage lender, sold five-year bonds in December 2008 under a government guarantee program introduced in the wake of the collapse of Lehman Brothers, paying a 120 basis-point spread to investors and a 70 basis-point annual fee to the government in return for the backing, Bloomberg data show.
The spread on Westpac Banking Corp.'s 7.25 percent notes due November 2016 surged 42 basis points this week to 204 yesterday, the highest since they were issued in November 2009, Bloomberg data show.
Australia's government announced plans in December 2010 to end a ban on banks selling covered notes, which are typically lower-yielding and rated AAA because they are backed by a pool of mortgages.
Covered bond sales globally surged to €33 billion (A$41 billion) this month, from €15.5 billion in December as Europe's crisis dampens demand for all but the safest debt. Australia's parliament passed legislation allowing sales of the notes in October.
More than 90 investors bought Commonwealth Bank's fixed-rate bonds, while the floating-rate notes had more than 70 buyers, according to Simon Maidment, the lender's head of group funding.
Commonwealth Bank, the nation's biggest mortgage lender, sold five-year bonds in December 2008 under a government guarantee program introduced in the wake of the collapse of Lehman Brothers, paying a 120 basis-point spread to investors and a 70 basis-point annual fee to the government in return for the backing, Bloomberg data show.
The spread on Westpac Banking Corp.'s 7.25 percent notes due November 2016 surged 42 basis points this week to 204 yesterday, the highest since they were issued in November 2009, Bloomberg data show.
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