Regulator mulls options for Formosa market

The sale of foreign-currency bonds with short-dated call options has been outlawed in Taiwan. Other options line up to satisfy investors hunting yield.

Regulator mulls options for Formosa market

A regulatory clampdown on Formosa bonds with short-dated call options has hit issuance volume, but market participants are hopeful new products will satisfy ongoing demand for higher yielding investments than are currently on offer in Taiwan’s local currency bond market.

Taiwan’s Financial Supervisory Commission FSC banned Formosa bonds with call options of less than five years in late May. The decision had an immediate impact on international issuers since they...

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