Barely a week since Macquarie Bank sold USD$2.5 billion worth of fixed and floating bonds into the US market, the bank has come back with a more modest offering in the local market. The A/A2-rated bank has sold $100 million of July 2026 bonds. The bond issue takes advantage of demand in the 10 year part of the yield curve as it would seem investors are keen to seek refuge from the turmoil in equity and commodity markets. The new bonds carry a 4.25% coupon and were priced at Swap + 160bps.
Macquarie Bank has issued bonds in several currencies recently, including US dollars, Hong Kong dollars, Swiss francs as well as Australian dollars. A quick analysis of the bank’s bond issues seems to suggest the bank’s preference in the last 12 months has been decidedly in favour of USD transactions.