Low Interest Rates Push Asian Lenders Toward Overseas Markets

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.

 


MORE ARTICLES ON LENDING, INTEREST RATES

 

 

Read more on

Suggested Articles

Some of you might have already been aware of the news that Questex—with the aim to focus on event business—will shut down permanently all media brands in Asia…

Some advice for transitioning into an advisory role

Global risks are intensifying but the collective will to tackle them appears to be lacking. Check out this report for areas of concern