Tycoons look to CBs as shares peak

The return of the convertible bond market this year suggests that Asia’s controlling shareholders see share prices approaching full value.

Asia’s controlling shareholders tend to like to sell shares at high prices, so the strong return of the convertible bond market this year could be another sign of an approaching market peak.

CB issuance in Asia ex-Japan and excluding A-shares during 2014 could come close to the record high of 2010 if the market follows last year’s trend of a busy final four months. Volumes are up more than 50% so far this year, with issuers in the region raising $10 billion year-to-date, according to Dealogic.

If the remainder of the year is as busy as the tail end of 2013, the CB market will...

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