Investors have shown the red flag to Asia’s high yield bond market after rejecting a trio of deals from debut borrowers at the very outer edges of the ratings spectrum over the course of Monday and Tuesday.
The looming summer recess was never going to help the deals’ respective lead managers build demand.
But investors’ thumbs-down suggests there has been a fundamental shift, which will not play to borrowers advantage when the market resumes in earnest again this September.
Dealogic figures show how the market has become swamped. As of last Friday, the region’s G3 bond issuers had sold $181.6 billion of paper, or...