The biggest challenge of any special report on Asia’s debt capital markets is usually finding a common thread among the region’s many individual bond markets. The latest report, however, comes with no such conundrum.
The renminbi bond market is offering a bewildering array of choices, with more onshore options coming online. The oft-predicted demise of Dim Sum, however, remains a long way away.
The Samurai market is broadening as a result of the search for yield in a negative rates environment, testing Japanese investors’ tolerance for risk.
The Asian US dollar subordinated capital market is having a poor year, leaving FIG bankers to focus on senior debt and local currency markets.
Asia’s sukuk market has defied predictions of doom linked to the fall in oil prices, with sovereign and infrastructure-linked issues potentially pointing to a record year for new issues.
Australian dollar funding has caught up to 2015 levels after a jump in issuance from banks and local governments, while Kangaroos and securitizations have contracted.
Securitisation is taking off in China, creating some much needed breathing room for banks and heavily indebted borrowers, but a lack of reliable data is keeping foreign investors away.
Singapore dollar debt issuers are luring yield-starved investors with the promise of juicier returns from riskier structures, but high-yield remains a no-go area.