Asia’s capital markets have come a long way, especially in the investment-grade space, but the same cannot be said for the high-yield sector.
The complementary nature of loans and bonds enables issuers to improve their bargaining power, lowering overall funding costs.
Chaori Solar said it would not make a March 7 interest payment, signalling China's first default. Some are calling it the country's Bear Stearns moment.
Several deals are expected, including a potential dollar note from China’s Logan Property and Indonesia’s Berau Coal.
The Asian Development Bank-affiliated Credit Guarantee & Investment Facility is working on its first guaranteed project bond.
The recent actions of the Chinese central bank raise the risks but have failed to dent appetite for offshore renminbi bonds.
Fatigue may have finally taken hold in the Chinese property sector, judging by investors’ reception towards China Properties Group’s dollar transaction.
The property group sold Asia’s first callable bond with a floating rate reset, addressing investor concerns in a rising interest rate environment.
Stronger market sentiment has encouraged new issuers such as China Aluminum International and New World Development to embark on roadshows.
Western Asset remains loyal to selective emerging Asia bonds despite recent outflows, with a bias towards North Asia credits, while avoiding frontier markets such as Mongolia.
Bank of China and ICBC are expected to arrange Fosun’s €500 million bridge loan to acquire the insurance arm of Portugal’s Caixa Geral de Depósitos
Although the enforceability of keepwell agreements remains untested in a restructuring scenario, the credibility of these credit support structures is improving.
Reduced bank appetite for corporate credit will prompt more Australian companies to issue in the bond markets, says Westpac’s John Chauvel.
Early redemption requests on domestic private placement notes add to nerves following a feared – but avoided – trust default in January.
The $300 million five-year sukuk achieved a pricing tighter than fair value when compared to the company's conventional note.