Aug
08
Debt Funding Readily Available for Australian Firms: RBA’s Kent
By-
Notes market’s signals to miners and the effect on spending
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Average funding rate for banks fallen about 10 bps recently
Australian firms outside mining have a ready source of funds in bond markets should they opt to invest and expand their businesses, Reserve Bank of Australia Assistant Governor Christopher Kent said.
Non-mining companies’ “investment demand remains modest,” Kent said in the text of a speech at Bloomberg’s Sydney office Wednesday. “However, as is the case across a range of funding sources, finance appears to be readily available to creditworthy firms in fixed income markets at favorable prices.”
Kent, who took on the role of assistant governor responsible for financial markets in December, provided a quick tour of bond markets and how they interact with the real economy…
Debt Funding Readily Available for Australian Firms: RBA’s Kent
