(1,500 words)

In the context of Australian investors, provide a report on the likely impact of the economic crisis associated with the COVID-19 pandemic on the markets for corporate and government debt. Highlight the relative opportunities and risks, in the coming 12 months, in respect to investment in Australian corporate bonds compared with Australian Commonwealth Government bonds. In your report, include information on the size (value) and structure (domestic vs foreign bonds and long-term vs short-term bonds) of the respective markets and discuss the drivers of issuance in each of the two markets. Your report must also provide a brief historical summary of the major trends in each market over the last five years, draw on media reports and include information about the yields and maturities of the two markets.