Desjardins Eyes Australian Bond Market for Funding Diversification

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Desjardins,Bonds,Australia

Desjardins Group, North America's largest financial services cooperative, is considering issuing bonds in the Australian dollar market to diversify its funding sources and support its growing lending book.

Esteban Duarte and Chunzi Xu, Bloomberg NewsPaul Gardner, partner and portfolio manager at Avenue Investment Management, joins BNN Bloomberg to share his outlook for the bond market.

“It’s all about diversification,” Yassir Berbiche, head of treasury at Desjardins, said in an interview. Tapping the Australian market would broaden its financing sources in terms of the yield curve and the investor base, Berbiche said on the sidelines of an industry event in Portugal last week. The Canadian lender has been expanding its lending activities in areas including corporate loans and residential mortgages at a faster pace than expected, Berbiche said. The residential mortgage sector in particular is accelerating due to falling interest rates and housing demand stemming from population growth, he said.

 

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