Article: AUST CORPORATE BOND MARKET LIKELY TO EXPAND TO FUND BANK LENDING.

SYDNEY, Nov 10 Asia Pulse - Australia's corporate bond market is likely to expand in the coming years as banks look to diversify their funding sources and local investors seek to increase fixed income holdings.

Westpac Banking Corporation (ASX:WBC) group treasurer Curt Zuber said on Tuesday that Australian banks would be looking to issue bonds with longer terms and to a wider pool of investors in the wake of the financial crisis.

"The bigger balance sheet forces you further out the curve," he said at a corporate finance conference in Sydney.

Bonds with longer terms are further out the yield curve.

Before the global financial crisis, ...

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