Merrill Lynch bullish on Asian telecom bonds

Merrill Lynch predicts 3G costs will weigh less on Asian telecoms than on their European counterparts, boosting the relative value of Asian telecom bonds.

Asian telecommunications company bonds could outperform those of their European counterparts as their credit ratings are unlikey to be as dented by high third-generation license costs, according to a report by Merrill Lynch.

European telecommunications companies including British Telecom, France Telecom and Deutsche Telekom have seen their credit ratings drop after they paid high prices for European 3G licenses. Third generation licenses allow higher data transmission rates than existing second-generation standards.

You're not buying the same credit story in Asia as you are in Europe, says Jason Carley, head of fixed income credit research at Merrill Lynch in Hong Kong. Even in Korea, Hong Kong and Australia, where demand for...

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 5 articles from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222

Article limit is reached.

Hello! You have used up all of your free articles on FinanceAsia.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences. To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222