Developments in corporate debt capital markets

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In recent years, Australian corporates in line with their global peers have been beneficiaries of significant advancements in the availability, sources of and cost of accessing term debt capital to fund their businesses. This has come from both domestic and offshore fixed income sources where the appetite for Australian corporate credit continues to grow. In doing so, corporate issuers have improved the diversity and tenor of their debt funding sources, tempered in part by the low penetration of fixed income in Australia. Product innovation and a broadening of the sourced of debt investor interest nonetheless, continues to expand the frontier of funding possibilities for issuers.

With an Australian corporate issuer focus, this paper has three sections, to outline the:

  • Section 1: tailwinds and challenges corporate bond issuers face in global markets;
  • Section 2: recent strong fixed income funding outcomes corporates achieved; and
  • Section 3: rise of Socially Responsible Investment; importance of Asian investors; widening appeal of $A corporate bonds and growth in Institutional Term Loans.

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This paper was presented in July 2018 at the 23rd Melbourne Money and Finance Conference, which explored the theme Business finance – current issues and developments.

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