RBA's Debelle on bond market

Australian banks, having sound balance sheets, have been able to maintain their pre-crisis pace of bond issuance and have continued to directly access wholesale funding throughout the recent period of turmoil, said Guy Debelle, an assistant governor at the Reserve Bank.

However, the governor acknowledged that the spreads at bond issuance had widened in the past six months and that this increase in funding costs had been passed on to business borrowers. Corporate bonds issuance had been almost

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