Saturday, 24 August 2019

Outlook for Asian Credit 2015

A special report with IFR Asia magazine 880 (February 7 2015)

A stuntman spits fire during a performance at a tourist attraction in Kaifeng, Henan province.

Outlook for Asian Credit: Playing with fire

IFR Asia - Outlook for Asian Credit 2015

Asian credit has been enjoying its time in the sun in recent years. Companies across the region have been able to fund their growth plans at low rates, and investors have done well.

Brides-to-be get ready for the “Running of the Brides” race in a park in Bangkok.

Keeping the pace

IFR Asia - Outlook for Asian Credit 2015

The threat of US rate hikes hangs over the credit markets in 2015, but strong growth prospects and bank capital constraints mean Asia’s bond markets are in for another busy year.

Shaolin monks perform during a festival in Hong Kong to commemorate Budda’s 2555th birthday.

Braving the odds

IFR Asia - Outlook for Asian Credit 2015

Asia’s G3 bond markets face some serious challenges in 2015, but bankers remain optimistic that the region’s primary debt markets can continue to grow

Customers select vegetables at a supermarket in Changzhou, Jiangsu province.

Looking local

IFR Asia - Outlook for Asian Credit 2015

Asia’s lenders are largely well capitalised, but, to keep pace with economic growth, they need to keep raising Tier 1 and Tier 2 capital, at least half which is likely to come from local markets.

Basel IV, anyone?

IFR Asia - Outlook for Asian Credit 2015

The biggest long-term capital funding consideration for Asian banks could be whether or not the concept of total loss-absorption capacity (TLAC) gains traction.

A reflection of the Chinese national flag is seen in a sign for the new China (Shanghai) Pilot Free Trade Zone, as a worker cleans it, in Shanghai.

Municipal clean-up

IFR Asia - Outlook for Asian Credit 2015

China’s domestic capital market holds the key to the overhaul of the country’s sprawling web of local government finances, and efforts to introduce municipal bonds are beginning to bear fruit.

Schoolgirls wearing colourful dresses cheer as they fly a kite during the Lohri festival celebrations at their school in the northern Indian city of Amritsar.

Let good times roll

IFR Asia - Outlook for Asian Credit 2015

Early signs since Narendra Modi’s election victory hint at India’s enormous potential in the global capital markets, but can issuers take advantage of international investors’ new-found confidence?

Workers from Ramky Cleantech Services clean up oil and debris from the beach at East Coast Park just east of the playground at Big Splash Water Park in Singapore.

After the oil shock

IFR Asia - Outlook for Asian Credit 2015

The Singapore dollar bond market has made a cautious start to 2015 after last year’s oil price slump left many investors nursing heavy paper losses on energy-related names.

Australia’s players celebrate with the Asian Cup trophy after winning their final soccer match against South Korea at the Stadium Australia in Sydney.

Asian connections

IFR Asia - Outlook for Asian Credit 2015

Asian demand for Australian dollar assets has lifted the issuance of Kangaroo bonds to a post-crisis peak and helped deepen Australia’s debt markets.

Students hold a piece of paper between their legs as they balance a book on their heads during etiquette training at a vocational school in Beijing.

In search of stability

IFR Asia - Outlook for Asian Credit 2015

Investors expect Asian bonds to overcome concerns over Chinese high-yield credits, paving the way for more first-time issuers to access the international markets.