Why Australia Became the World's 3rd Largest Bond Market

Brad Scott, Head of Debt Capital Markets in Australia at Bank of China, joins Shankar Ramakrishnan and Bruce Clark of IGM to discuss the rapid growth and increasing globalization of the Australian dollar bond market, including record issuance and the expanding role of non-Australian “kangaroo” issuers across sectors. Scott explains key drivers such as issuer and investor diversification, improved market depth and liquidity, higher yields attracting inflows, and the rising importance of Asian demand, while noting the market’s limits in absorbing very large corporate deals like Alphabet’s A$5.5 billion issue. The conversation covers RBA rate hikes, cross-currency swap dynamics, volatility and U.S. political risk impacts, Australia’s compulsory superannuation system as a structural support, growth in Tier 2 and hybrid issuance tied to regulatory changes and energy transition capex, and Scott’s career advice for graduates pursuing DCM.