One of the big talking points in the bond market over the past few days has been the glaring disconnect between big and small buyers in the market for Australian bank bonds.

Last week, Commonwealth Bank managed to place $1.77 billion of ASX-listed tier one hybrid securities paying a margin of 2.85 percentage points over the bank rate. That’s the second-lowest cost of funds by a major bank in the last 35 transactions since August 2011.