Commonwealth bank of australia locked in higher spreads in the European covered bond market last Wednesday in a sign that the country's major lenders are having to work harder to maintain access to global funding. Australia's biggest bank provided investors with attractive concessions for its €1.25bn dual-tranche deal, split into maturities of five and 15 years. CBA's financing, coming after a stark increase in credit spreads, also suggests that Australia's banks do not expect funding costs to improve in the near future. "It's interesting to see these global flinders come and validate these secondary levels, and they're not afraid to put a premium on deals either," one banker said.
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