The Asian debt capital markets have finally made it to the global scene. After years of fairly lacklustre primary activity, with Korean financial institutions and cash-strapped governments at the forefront, the range of Asian issuers in the international markets now covers a broad cross-section from emerging sovereigns to policy banks, from Double A lenders to Single B industrials, and bond issues seem to be near the top of every regional treasurer’s mind.The question remains, however, whether or not such rich pickings are here to stay. Does the rise in international DCM issuance signal a shift in mindset among Asian funding officials, or is it simply a response to some extraordinary conditions in the US dollar market? The chance to borrow at ultra-low interest rates in a currency that is depreciating against the Asian basket is surely
Inflation is the bogey man stalking South-East Asia’s apparently resilient economies and robust capital markets. The region shrugged off the global financial crisis in handsome style, returning quickly to rapid economic growth, enjoying the fruits of buoyant currencies and delivering lusty stock market returns.
Asia’s credit markets have entered 2011 in fine form. After an unprecedented run for emerging markets in 2010, confidence in Asian bonds is running high. The international debt capital markets have finally established themselves as an essential tool for the region’s fastgrowing private companies – not just public sector agencies – and global investors have shifted their Asian allocations to overweight.