https://www.rba.gov.au/speeches/2018/sp-ag-2018-12-10.html  7/10  12/10/2018  US Monetary Policy and Australian Financial Conditions | Speeches | RBA  An imperfect world Some swap counterparties have an inherent reason to enter into swap transactions with Australian banks. In other words, such exposures actually help them to manage their own risks.
Non-residents that issue Australian dollar debt – in the so called Kangaroo bond market – are a case in point. These issuers raise Australian dollars to fund foreign currency assets they hold outside of Australia. This makes them natural counterparts to Australian banks wanting to hedge their foreign currency exposures. Similarly, Australian residents invest in offshore assets.