Source: Reuters/Murdani Usman A Balinese dancer takes part in a parade during the 33nd Bali Art Festival in Denpasar South-East Asia does not get as much spotlight as China and India do, but that is a basic injustice rather than a comment on the region’s performance. The region has demonstrated resilience even as the global economy has struggled and its capital markets boast an impressive growth story, one that shows few signs of slowing. Indonesia, the region’s giant, is the standout performer. It boasts one of the world’s best-performing...Read more
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Indonesia is undergoing a remarkable transformation from market pariah to market darling. The country’s capital markets are booming, it enjoys an investment-grade rating from two of the big three agencies and even the regulators are starting to make issuance easier.
If the trauma international banks are undergoing creates an opportunity for local Asian names to build a regional presence, then Malaysian banks are at the forefront of taking advantage.
Hot domestic demand has stifled growth of foreign investments in Malaysian IPOs, but overseas investors will struggle for allocations until they are willing to commit to cornerstone positions.
The depth of the Singapore-dollar-bond market’s growth was amplified last year when a record number of Hong Kong-based borrowers went south to tap a record volume of issues. The trend is continuing this year with a flurry of issues.
When Thailand opened its doors for foreign issuers to sell bonds in baht, what it actually got was a flood of Korean issuers. Still, that concentration of interest has not bothered anybody so far. Thais get familiar names with high ratings and some diversification, while Koreans make saving relative to other sources of funds.
The Philippines’ central bank made a big impact on capital markets when it ended a moratorium on Lower Tier 2 issues last year. Liquidity in the country remains strong and investors believe the low interest rate environment will persist for the short to medium term and drive more issuances.
The Philippines’ SM Investment Corp showed the kind of CBs that are sellable in current markets in pricing a straight-forward deal with an uncomplicated structure in February. Although modestly sized, the trade has generated optimism and more South-East Asian issuers may look at the equity-linked market this year.
