Gap between issuers and investors makes new CBs a challenge

Investors have cash to invest but prefer convertibles and exchangeables from high-quality names like Temasek. Other issuers need to offer investor-friendly terms and asset swaps to get their deals out the door, sources say.
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Barclays: Weakness in supply of CBs poses a challenge to investors
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<div style="text-align: left;"> Barclays: Weakness in supply of CBs poses a challenge to investors </div>

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.

This is perhaps not too surprising as the lunar new year fell early this year, but there is a worry that there are other reasons for the slow...

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