RBA’s Debelle sees mixed future for bond markets

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Australia's financial system "may well" move towards more market-based sources of finance in the future but, for the time being, bank and corporate bond issuance will likely remain "subdued", according to Guy Debelle, an assistant governor at the Reserve Bank of Australia (RBA).

Debelle told the Economic Society of Australia that – because regulatory changes have "increased the relative cost of bank intermediation" – market-based sources of finance are now more cost-effective for a wider range

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