“We really are in a secular shift for greater demand for fixed income securities in Australia,” John Wilson, the head of the global bond giant’s [Pimco’s] Australia operations told Deal Journal Australia. “That’s why you will see increasing issuance in the domestic market by domestic issuers.”
“We are seeing this notably in our flows in the wealth management business. Private investors are seeking recurring income and capital stability,” he said.
In recent weeks some of Australia’s national champions–such as retailing giant Woolworths and conglomerate Wesfarmers–have issued local currency debt even as some of the country’s other big corporates have skipped local investors and borrowed elsewhere.
via Pimco Eyes Aussie Bond Boom – Deal Journal Australia – WSJ.