A toxic brew of supply pressure, rising interest rates, portfolio outflows and investor nervousness are making Asia’s G3 bond markets a far harder place for borrowers to navigate their way around than only as recently as last year when they had a full 12-month clear run.
The days of pricing through secondary market spreads are potentially long gone, but successful deals are still possible for those issuers, which prepare the ground carefully as funding officials from DBS and the Republic Indonesia both attest.
The two borrowers rank among Asia’s most experienced and both have accessed the G3 bond markets in recent weeks. DBS completed Singapore’s first tier-2...