No local bonds have been issued for the month of August as nervy credit markets digest the sub-prime debacle.
Volatility in global credit markets has wiped out domestic bond issuance in Australia.
No bonds have so far been issued for the month of August.
This compares to August 2006 where $5.7 billion worth of local bonds were issued.
Bond issuance in Australia has been plummeting since May, when reports first emerged about defaults on low documentation, or sub-prime, loans in the United States.
In May, $4 billion worth of domestic bonds were issued.
This had fallen to $2.5 billion in June and just $800 million worth of domestic bonds were issued in July.
The collapse of the US sub-prime market has ground global credit markets to a halt in recent months and many fear a re-run of the 1998 Russian bond crisis.
Ratings agency Moody's last week warned the recent sell-off in collateralised debt obligations could result in the liquidation of a large hedge fund reminiscent of Long Term Capital Management in 1998.
More than US$40 billion worth of corporate bond or loan deals have been pulled since July 20.
It takes the total number of bond or loan deals postponed or reduced in the past month to 46 deals, worth a staggering US$60 billion.
No pulled deals were counted in the whole of last year.
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