For example, Coke, which is rated A-, was able to issue more than 100 basis points below the AAA rated domestic covered bond issues. 4  BIS central bankers’ speeches  The rise in wholesale funding costs has been accentuated for funds raised offshore by a widening in the cost of swapping foreign exchange into Australian dollars (Graph 4).
They might only help to improve banks’ profit and loss accounts, which might be the reason why they are so much in favour of rate cuts. Budget stimulus measures might end in higher savings, and in higher public debt. This was the experience of Japan in the second half of the 1990s.