Asia’s equity-linked market struggles to perform

Investors and banks are putting less resource into the asset class amid falling new issue volume. But it is not the end of the day.

Asia’s equity-linked market is undoubtedly going through a difficult period.

The asset class, which broadly includes convertible bonds, exchangeable bonds and other structured products, is struggling from both demand and supply side.

With dedicated funds and new issuance both on the decline, Asia’s equity-linked market is gradually drying out.

With the exception of Japan which is often seen as a standalone market, there were about $3.9 billion worth of equity-linked securities redeemed or converted since the beginning of the year, compared to $5.8 billion for last year, according to Daiwa Capital Markets.

The nearly one-third decline in redemptions implies a...

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