In recent weeks YieldReport has noted the recent popularity of floating rate notes (FRNs) and bonds among issuers and investors. Commonwealth Bank has kept the trend intact by issuing $2 billion of new 3 year benchmark FRNs at 3m BBSW + 98bps. This margin is exactly the same as the $2billion worth of NAB 3 year FRNs issued in March. The two banks share the same credit rating and are clearly two of the four major banks in Australia.
It’s already been a busy week for the CBA. The latest issues comes on top of £250 million of 1 year FRNs issued in the UK and nearly $300 million of 1 year and 3 year fixed rate bonds issued into the domestic market in the last few days.