Business
Westpac raises $2.75b in first post-pandemic bond sale – The Australian Financial Review
Westpac is the first bank to tap the senior bond market for funding as lenders prepare to wean themselves off cheap Reserve Bank funding.
Just prior to the COVID-19 pandemic, Westpacs credit default swaps, which are the cost of insuring against debt default, traded at around 35 basis points.
Low funding costs meant Westpacs large long-term bond raising came at a modest cost. The 5-year US dollar bonds yielded 1.16 per cent. The 10-year bonds yielded 2.16 per cent.
The big four banks have been active since the pandemic in raising Tier II bonds, taking advantage of lower funding costs. In total, Australian banks have sold over $9 billion…
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