SYDNEY: Bond issuance by overseas borrowers in Australia could face strong headwinds as the once-red hot Aussie dollar suffers a violent turnaround, adding to the soaring costs of capital adequacy compliance for bond underwriters.
Kangaroo bonds, Australian dollar-denominated debt issued by foreign borrowers, was about one third of the A$90 billion ($86.75 billion) of non-government bond debt sold locally last year - a useful fee revenue stream for intermediary banks.
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