AUSTRALIA - Selling Telstra to buy Microsoft

The Australian federal government is decreasing the number of bonds it issues into the market, a move that has provoked concern from the country's issuers and investors. They believe that Australia needs a strong bond market, whether it needs the funds or not. One controversial solution is that the government should continue to issue bonds, which it would then invest in securities – “selling Telstra to buy Microsoft” as it has been cynically described. Asiamoney's Fiona Haddock discussed the issue with semi-government issuers and institutional investors in Sydney. National Australia Bank acted as co-chair.