The six basis point levy that has so aggravated the five banks and their industry association is ho-hum and no burden to those banks in accessing a recently cultivated corner of the capital market."We do not expect the Australian government's new levy on bank liabilities to weigh on the issuance of covered bonds," Moody's Investors Service said in an assessment of this market, one that has been accessed by local banks for less than a decade.Grandstanding Australian Bankers Association style may have its place in the lobbying wars, but risk management on the liability side of the balance sheet is more relevant, or so Moody's outlined."The levy could in theory dampen covered bond issuance because such securities will be subject, as a form of secured lending, to the levy. Therefore, the levy could create an incentive to reduce issuance," Moody's explained.It's an unlikely scenario, though."We expect Australian banks will continue to use covered bonds to maintain the diversity of their funding and also to take advantage of strong offshore demand for Australian covered bonds," Moody's said."These factors will drive issuance in the second half of 2017."Around A$2.7 billion in covered bonds will mature over the second half of 2017, to be refinanced in what's become a robust market.Australian banks placed $8.2 billion in covered bonds over the six months to June 2017, which was down from $9.1 billion over the same period in 2016, Moody's said. The credit ratings agency summed up: "Over all of 2017, we expect issuance to broadly equal issuance in 2016, when a total of $16.9 billion was issued."