Gap between issuers and investors makes new CBs a challenge

As Asia gradually returns from the lunar new year holidays this week and next, market participants are hoping for a revival of the region’s equity capital markets. Deal activity in the last three months of 2011 reached only $28.4 billion, which is the lowest quarterly volume since the first quarter of 2009, and the start to this year has also been lacklustre. Excluding deals smaller than $100 million, there have been only three block trades, one top-up placement and one convertible bond.