CommBank surprises with jumbo domestic non-guaranteed trade

In a sign that domestic investors are gaining in confidence, Commonwealth Bank of Australia (CommBank) (AA/Aa1/AA) today launched its third non-guaranteed trade since the government guarantee was introduced last year. Pricing took place just 3.5 hours later and the total volume of the three-year bonds exceeded expectations - A$1.2 billion (US$859 million) was priced in fixed and floating rate notes (FRNs) at mid-swap and bank bill swap rate (BBSW) plus 130 basis points. Thirty-five investors participated in the trade.