The first Australasian covered bond, issued by Bank of New Zealand (BNZ) (AA/Aa2, with an issue rating of Aaa/AAA) on June 14, has been met with a positive response from the domestic investor base at which it was targeted. With some fund managers able to hold covered bonds outside their normal limits to unsecured bank paper there are also hopes the BNZ trade will soon be followed by more covered bonds in New Zealand.