Bond issuers’ bargaining power will improve if they expand their investor base beyond the Reg-S market, which essentially is the market for debt offerings outside the US by both US and foreign issuers, says Bank of America Merrill Lynch. This is notably true for repeat borrowers.
Fixed-income issuers that register under both Reg-S and Rule 144A which allows them to tap the US investor base will benefit, potentially leading to much tighter bond pricings, note debt bankers. This is because there is only so much that the Reg-S market can handle in terms of DCM volumes, which have been growing extensively in Asia.
“For many borrowers, accessing...
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