Commercial paper now accepted by RBA

Ian Rogers
The Reserve Bank will once again extend the list of securities it will accept in domestic dealing arrangements.

From Monday, 10 November, the list includes Australian dollar commercial paper rated P-1 or equivalent; Australian dollar asset-backed commercial paper rated P-1 or equivalent and Australian dollar debt securities rated AAA or equivalent, excluding highly structured products.

Banks will not be able to offer their own securities, except in the case of mortgage-backed debt (and which has only been possible as a matter of routine since early last month).