Australia's biggest bank, National Australia Bank (NAB) is eyeing a possible tie up with Wells Fargo & Co. The collaboration is intended to bring Australian borrowers to high yield bond markets and to the US term loan B instruments. This was said last Thursday by bank sources that are familiar with the report.
An alliance between NAB and Wells Fargo would make the firm as the first Australian bank to compete directly with other investment banks. These include Bank of America Merrill Lynch and JP Morgan who are currently are in control of the profitable term loan B market.
The sources asked to be unnamed as they were not authorized to speak regarding said matter. Spokesperson from NAB decline to comment while the Wells Fargo spokesperson was not immediately available to release statements.
Numerous Australian firms have made it successfully to the TLB market in the last 12 months. According to Loan Pricing Corp data, a year to date issuance of instruments reached US$3.74 billion.
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