The use of a new reference rate for cross-currency swaps in Australia is set to influence debt issuance rates from the country’s banks as well as rates used in derivatives markets, participants suggest.
Australia’s banks rely on offshore markets for two-thirds of their funding via bonds, which means cross-currency basis swaps are pivotal to how the country’s banks and derivatives users structure their trades and hedges.
Banking authorities in Australia have outlined their plans for existing
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