Australian corporates are increasingly active in
the US high-yield market because their home market has no
equivalent. Structural issues prevent the development of
domestic high yield.
Government reports have urged the deepening of
Australia’s corporate bond market. But there have
been only eight corporate high-yield deals in Australia
year-to-date with a total value of A$1.9 million ($1.7m
million), according to Dealogic.
In May flag airline carrier Qantas opened the
domestic high-yield market by selling Australia’s
first senior unsecured bond in the wholesale market. But that
didn’t open a new market.
"It’s difficult to see a high-yield market in
this jurisdiction when compared to the depth of, for example,
the US market,...