In today’s environment, understanding domestic credit market conditions is critical as liquidity, pricing, and covenant structures continue to evolve.
KPMG’s Debt Market Update provides a snapshot of credit market activity debt trends and insights, and their implications for Australian companies.
The update also explores the sector-specific dynamics shaping borrowing strategies. Our debt market insights can help Australian companies anticipate market movements and optimise their capital structures.
We typically outline indicators such as:
- market indices showing current pricing of rated debt instruments
- interest rate curves demonstrating the underlying cost of debt and forecast changes
- levels of debt issuance and associated commentary
- notable debt issuances, and level of issuance, in the debt capital and syndicated loan markets
- ESG linked debt instruments – notable transactions and volumes.
Download the latest edition
For the first time since November 2023, the Reserve Bank of Australia increased the cash rate by 25bps to 3.85% at its February 2026 meeting, a move largely anticipated by markets with short- and medium-term rates trending higher over the past six months.
However, corporate all-in funding costs have not increased commensurately, as strong investor demand and elevated issuance have compressed margins. Primary deals have generally priced at the tighter end of guidance across senior and subordinated formats.
Read more in the February 2026 edition.
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