Why Do Australian Borrowers Access Overseas Capital Markets

Question

Examlex · Accepted Answer

The Answer is Overseas capital markets generally offer three benefits:
i.Eurocurrency markets have less regulatory requirements for borrowers, which can reduce issuing costs and may offer tax savings for investors, increasing investment returns.ii.Overseas capital markets offer investors an alternate investment opportunity and provide borrowers with additional sources of funds.This gives borrowers opportunities to diversify their lending or take advantage of natural hedges in countries where they have other investments.iii.Some of the overseas markets are much larger than Australia's domestic markets and are able to handle larger issuers and lower grade borrowers than is possible in Australia.

Why Do Australian Borrowers Access Overseas Capital Markets

Definitions: