Gap between issuers and investors makes new CBs a challenge

Investors have cash to invest but prefer convertibles and exchangeables from high-quality names like Temasek. Other issuers need to offer investor-friendly terms and asset swaps to get their deals out the door, sources say.

Gap between issuers and investors makes new CBs a challenge
Barclays: Weakness in supply of CBs poses a challenge to investors

As Asia gradually returns from the lunar new year holidays this week and next, market participants are hoping for a revival of the region’s equity capital markets. Deal activity in the last three months of 2011 reached only $28.4 billion, which is the lowest quarterly volume since the first quarter of 2009, and the start to this year has also been lacklustre. Excluding deals smaller than $100 million, there have been only three block trades, one top-up placement...

To continue reading, please login or register for free

Click for more on: convertible | outlook | temasek | barclays capital

Print Edition

FinanceAsia Print Edition

CONFERENCES