Debt river running deep
Issuance continued apace in the domestic market last week. Just two weeks into August and corporate bond issuance for the month already amounts to A$7.4 billion, more than half of the record issuance seen in July, which came to A$14.1 billion (revised upwards from earlier reports). This pushes the year-to-date issuance volume well past the annual record of A$62.3 billion, set in 2006. Year-to-date issuance now stands at A$66.4 billion.Issuance volumes in recent months have run well ahead of the A$10.9 billion of corporate bonds maturing in September. Perhaps attention is now focused on the A$48.5 billion of corporate bonds that will mature next year. Many of these bonds will have already been moved into investor's cash portfolios. Perhaps it is also worth mentioning that there will be more than A$61 billion of bonds maturing in 2011 and more again in 2012. And those numbers will continue to get larger.