Asian banks traditionally focused on the region are gaining on their international competitors in global corporate lending, bond issues and even acquisition financing, reports the Wall Street Journal, citing a survey by U.S. law firm Paul, Hastings, Janofsky & Walker.
"We've seen more Asian banks involved outside their home markets in general financing, and acquisition financing and high-yield financing," says Brett King, who heads leveraged finance for Asia at Paul Hastings. "The market has changed since 2007. For high-grade issuers, there's a lot of choice in debt financing, but subinvestment-grade companies often find raising funds challenging. But we've seen more Asian banks entering the international markets lately."
Low interest rates are the reason behind the overseas drive, says the Journal.
"The Korean and Taiwan markets are saturated with high liquidity and low yields, so banks there are looking for increased returns," says King.