It is an open secret in the capital markets that perpetual bonds do not, in fact, last forever. That message, however, has yet to make it to China’s ruling classes.
Institutional investors can move on. SoftBank Corp’s record IPO is practically a done deal, even before bookbuilding begins.
The introduction of the Shanghai-London stock trading link has enormous political significance for the governments at each end of the connection. In capital markets terms, however, its success will boil down to two things: price, and liquidity.
Masala bonds are finally back on the menu for Indian companies after an eight-month diet, but bankers and issuers should not be expecting a feast.
Never mind Adam Smith’s invisible hand, state-owned entities in China and Bangladesh are proposing to deliver a helping hand to ease the pressure on investors facing losses in their troubled equity markets. Not only that, but they are planning to issue bonds to fund the exercises.
The Korea Housing Finance Corp has finally achieved a long-held goal to issue covered bonds in the euro market. It is, perhaps, a surprise that it didn’t come sooner. US interest rates are rising, and it’s no secret that Europe has a much more liquid covered bond market that the US, which is where KHFC has issued all of its previous deals.
Malaysians like to boast of having the best bond market in Asia, capable of funding even long-term infrastrucure projects in local currency. They now have an awkward question to answer: what happens when the government stops issuing?
An earthquake in the small hours of Thursday morning gave delegates at the IMF’s annual meetings in Bali an uncomfortable reminder that Asia’s emerging economies remain vulnerable to unforeseen shocks. The financial markets are doing their part, too.
China's US$3bn sovereign bond issue on Thursday was only its third in the US dollar market since 2004, but after last year's triumphant return it was hard to escape a sense of weariness and déjà vu, with all eyes focused instead on Wall Street's rout.