Who wins? Bloomy says Canada:
“When there’s concerns about the Chinese market slowing down or the Chinese economy slowing down, it’s viewed that sometimes the Australian banks may have more exposure to it than the U.S. or Canadian banks would have,” said Matt Brill, a money manager at Atlanta-based Invesco Ltd. who holds U.S. currency debt from both Aussie and Canadian lenders. While the market has “less familiarity” with the Australian banks, Invesco sees them being able to handle that China exposure and Brill reckons their bonds “do trade fairly cheap” given the ratings they hold.
…Australian financial company bonds in the U.S. currency market yielded an average of 1.83 percent as of last week, about 5 basis points more than comparable Canadian businesses, according to Bloomberg Barclays Index data.