The Corporate Bond Report 2018
Australia’s growing appetite for corporate bonds
Deloitte Access Economics was commissioned by FIIG Securities Limited to unpack the latest trends in Australia’s corporate bond market and consider what might happen next.
The Australian corporate bond market has grown by more than 40% since 2010, currently reaching over $1 trillion of Australian corporate bonds outstanding. This is more than two-thirds the size of the Australian stock market – yet, corporate bonds do not receive nearly as much attention as an investment option in Australia and fly under the radar of most investors.
Historically, corporate bonds have only been issued by large rated companies in Australia and purchased by overseas or institutional investors. Innovations in the Australian corporate bond market are enabling greater access for both issuers and investors. Recent years have seen increased issuance by unrated corporates seeking direct access to capital markets, and greater demand for corporate bond investments from private and noninstitutional corporate investors.
This report unpacks the latest trends in Australia’s corporate bond markets, seeking to understand what’s driving investor and issuer activity, what’s holding back market participation, and what might happen next. The research is informed by a Deloitte Access Economics survey of more than 700 high net worth individuals (individuals with more than $2 million of investable assets), as well as consultations with corporate investors and debt issuers.
Published: May 2018