The Australian retail corporate bond market: now rising from the depths?
Blake Dawson Senior Associates James Morris, Bronwyn Kirkwood and Graduate Nicole Pedler
ASIC's new Class Order [CO 10/321], released on 12 May 2010, may go some way to developing a more active retail bond market in Australia. The new Class Order is aimed at helping to simplify and reduce the time and expense involved in issuing into that market.
The Federal budget also contained an announcement that, from 1 July 2011, a 50% tax discount will be available for the first $1,000 of interest earnt by Australian investors, which might spark some (perhaps limited) further interest in the market.
Whilst the new Class Order and Federal tax relief is a positive step for the market, there remain, however, a number of potential stumbling blocks that we consider may still continue to restrain the development of a strong retail bond market in Australia.
To view the full article by Blake Dawson Senior Associates James Morris, Bronwyn Kirkwood and Graduate Nicole Pedler published on 13 May.