Saturday, 24 August 2019

Debt Capital Markets 2015

A special report with IFR Asia magazine 901 (July 11 2015)

A boy is silhouetted while watching the sun rise at Karachi’s China Creek.

Debt Capital Markets: Clouds gathering

IFR Asia - Debt Capital Markets 2015

Asia’s debt capital markets are facing an uncertain future. Interest rate hikes are on the cards in the US, China’s stock market is in turmoil and the eurozone may be falling apart.

Lightening strikes across the sky during a thunderstorm in Guangzhou, Guangdong Province.

Turbulence ahead

IFR Asia - Debt Capital Markets 2015

Asian bond markets have been on an uninterrupted growth path since the financial crisis, but the economic slowdown across the region threatens demand for financing just as increased global market volatility begins to bite.

A man folds silk fabric at a shop in Dong Xuan market in Hanoi.

To each its own

IFR Asia - Debt Capital Markets 2015

Asia’s domestic debt markets have taken recent global volatility in their stride, but not all of them were as sure-footed in handling local challenges, resulting in mixed performances.

Eagles fly around an eagle-shaped kite at the international kite festival in the western Indian city of Ahmedabad.

Flying high

IFR Asia - Debt Capital Markets 2015

Asian high-yield issuance has shown resilience in the face of global volatility, with the support of the region’s private banks and wealth managers and a reduced correlation to the US market.

A resident picks food with a pair of long chopstick at a table full of dishes during a “Ten Thousand Families Dinner”, in Wuhan.

Spoilt for choice

IFR Asia - Debt Capital Markets 2015

Asian investors have grown comfortable with the new flavours of bank capital and remain as hungry as ever for yield, giving issuers the freedom to choose different structures and to narrow premiums.

Students celebrate with spray paint after finishing their national examinations in Medan, in the North Sumatra province

Youthful ambition

IFR Asia - Debt Capital Markets 2015

Asia’s sukuk market is having a good year, thanks to rising interest from Middle Eastern buyers and a benevolent regulatory climate, but it still has some way to go to fulfil its promise.

Device’s collecting samples of Beijing’s air are installed on the rooftop of the air quality forecast and warning centre in Beijing, China.

Green shoots

IFR Asia - Debt Capital Markets 2015

Green bonds face a tough sell in Asia, where climate concerns have long taken a back seat to development. That mindset is changing, but the right incentives will be key to creating a vibrant local market.

Adam Ashley-Cooper (L) of Australia loses the ball while being tackled by Julian Savea of New Zealand at Eden Park in Auckland.

Tasman chasm

IFR Asia - Debt Capital Markets 2015

Less-attractive Australian interest rates and competition from issuance of asset-backed securities have brought the Kangaroo market to a halt, in contrast to a still-thriving Kauri market supported by New Zealand’s strong fundamentals.

Motorists use PLUS Expressways along Sungai Buloh outside Kuala Lumpur.

Road tested

IFR Asia - Debt Capital Markets 2015

Malaysia’s buoyant project bond market offers a template for other Asian countries even as its now-mature market becomes less dependent on government guarantees and faces saturation.