(Bloomberg) High-yield bond sales in Asia are off to their slowest start in six years as China property developers remain largely shut out of the market, dealing a blow to the top arrangers of these deals including HSBC Holdings Plc and JPMorgan Chase & Co. Companies have raised just $2.41 billion in the region’s dollar junk bond market this year, compared with $21.9 billion in the same period last year. The drought extends a slowdown from 2021 when issuance plunged 42% in the second half from the previous six months to a five-year low, according to data compiled by Bloomberg. Investment bankers see little sign of a turnaround this year as China’s restrictions on borrowing by property firms make it harder for them to tap the bond market, and as yields as high as 23% for speculative-grade debt make borrowing prohibitively expensive. After at least a dozen defaults by property firms including giants in the offshore market like China Evergrande Group and Kaisa Group Holdings Ltd., b
(Bloomberg) High-yield bond sales in Asia are off to their slowest start in six years as China property developers remain largely shut out of the market, dealing a blow to the top arrangers of these deals including HSBC Holdings Plc and JPMorgan Chase & Co.
Companies have raised just $2.
(Bloomberg) High-yield bond sales in Asia are off to their slowest start in six years as China property developers remain largely shut out of the market, dealing a blow to the top arrangers of these deals including HSBC Holdings Plc and JPMorgan Chase & Co. Companies have raised just $2.41 billion in the region’s dollar junk bond market this year, compared with $21.9 billion in the same period last year. The drought extends a slowdown from 2021 when issuance plunged 42% in the second half from the previous six months to a five-year low, according to data compiled by Bloomberg. Investment bankers see little sign of a turnaround this year as China’s restrictions on borrowing by property firms make it harder for them to tap the bond market, and as yields as high as 23% for speculative-grade debt make borrowing prohibitively expensive. After at least a dozen defaults by property firms including giants in the offshore market like China Evergrande Group and Kaisa Group Holdings Ltd., b
Bonds bonanza in Asia Pacific
The New Year saw unprecedented activity in Asian debt capital markets with record levels of Asian currency bond issuance from regional governments and companies, as they tried to leverage low interest rates to help raise funds for recovery as well as growth to new markets. This included the Republic of Indonesia s 3 billion US dollar/ 1 billion euro 4-tranche sovereign issuance.
The combination of investors keen to put money to work, coupled with clients looking to extend debt maturities and capture the first available funding window, led to the landmark volume of issuance according to Deutsche Bank s APAC head of Capital Markets, Haitham Ghattas.