Asia on track to achieve $150bn bond supply

Bond supply volumes in Asia remain on track for another record year in spite of an underperforming market, fund outflows and weak fundamentals.

Morgan Stanley maintains its Asia ex-Japan G3 supply target for the year at $150 billion, a 25% increase from last year’s total of around $120 billion and 36% rise from 2012’s volume of approximately $110 billion as new sources of demand are being uncovered.

The bank also predicts that the market size will reach $1 trillion by 2017, up from 2013’s size of $592 billion. This forecast requires an average annual supply of $150 billion over the next five years less in the first...