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. After such a strong run, however, many questions remain unanswered, and analysts are right to wonder where the markets will go from here. Will...Read more
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Having proven that it no longer depended on economies in the US or Europe, Asia looks set for another period of strong growth in 2011. Still, the question remains as to how much of that growth is dependent on the flow of hot money from the US.
Asia’s high-yield bond market came of age in 2010, making up a far larger portion of the region’s international debt markets than ever before. As US investors remain hungry for yield, hopes are running high for another bumpercrop in 2011.
Many of the factors that drove international bond volumes in Asia to a recordlast year remain in place at the start of 2011 and things have certainly begun well. However, not many pundits are predicting another landmark year as inflation emerges on the horizon.
Asian currency deals are increasingly attracting cross-border interest. After the Philippines capitalised on this trend with a peso bond that was distributed the world over, more issuers are thinking global.
The renminbi bond market is going to do only one thing in 2011 – to get bigger. On present growth rates, some predict Chinese currency debt will emerge as a serious rival to the US dollar market within five years. It is already on the way.
After moving up a gear in 2010, hopes are running high for another year of landmarks in Asia’s Islamic finance market. However, a series of setbacks in the second half of last year have clouded the outlook.
Things are finally looking up for Asia’s structured-finance market with the reappearance of collateralised loan obligations and other structures that disappeared in the 2008 crisis. What does that mean for Asia, and where are the opportunities coming from?
Asia’s economy is slowing and inflationary pressures are rising, but, for investorsin the region’s credit markets, the song remains the same this year – bet on improving fundamentals and stronger currencies.