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Makes sense to me. The banks (and our govts) have no natural need for USD (unlike BHP) and need their funding in AUD. The price of hedging certainly looks pretty steep but that is understandable given recent history on that front.

That's just reporting. They're dual listed - Australia and UK. They pay dividends in AUD and GBP, not USD. Their reporting methods are an internal matter. But I agree to the extent that many of their operations have inherent forex risks courtesy of operating (or selling) in those...

Actually I think Marty stated what it would likely be and TF as well - the BHP debt is in USD and the Aus Govt / Bank debts are in AUD. In the first instance, BHP takes exchange rate risk and effectively the Aus Govt / Bank debts don't - their lenders do instead. Hence the higher rate for...

This is certainly an interesting question. The banks have higher credit ratings so that doesn't explain it. Sovereigns such as Australia have even higher ratings again. BHP is A, WBC is AA and Aus Govt is AAA. Certainly it would help that BHP don't actually need the money but still that's an...

The printing presses. The European Central Bank just has to create the money and guarantee to lend it to Italy et al and all will be well. You have to admit there is plenty of precedent for that strategy - although it might scare a few Germans along the way... Alternatively they split out of...

More information please TF. Got some numbers? My understanding is that securitisation has been way down from where it was pre GFC for the last few years but is still functioning and has been bouncing around a bit. Can't find any evidence that it has "closed" though. Of course it has...