Commonwealth Bank of Australia (CBA), one of the country's four major domestic banks, claimed to have become the first in the local market to securitize domestic and offshore credit exposures through the issue of credit-linked notes.

The bank entered into a credit swap with its Medallion Trust special purpose vehicle covering exposures totaling A$1.5 billion. Medallion financed the swap with a A$180 million issue of credit-linked notes, the proceeds of which will be invested in government-guaranteed assets.

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