Corporate bond markets are a significant part of the global capital markets and a critical source of financing for economic growth. Since 2004, various developments have impacted corporate bond markets.
APAC corporates' cross-border issuance of foreign-currency bonds almost doubled in 2Q17 to hit a record high, led by a surge in issuance by Chinese companies. Tight domestic funding conditions are likely to keep Chinese cross-border issuance relatively high during the rest of the year, says Fitch Ratings.
New, tighter regulations on foreign holdings of Indian rupee-denominated corporate bonds and offshore issuance will reduce options for companies to diversify their funding sources, at least temporarily, Fitch Ratings says.
The "Bond Connect" scheme that provides a new channel for foreign investors to access China's onshore interbank bond market (CIBM) is another example of the authorities' recent efforts to encourage portfolio inflows, and may help put renminbi internationalization back on track after a lack of progress in recent years, says Fitch Ratings.
Bond yields in emerging East Asian markets continued their downward trend between 1 March and mid-May as optimism in global economic prospects gained pace, the Asian Development Bank’s (ADB) Asia Bond Monitor said.
Bond yields in emerging East Asian markets fell between 31 December and mid-February despite the risk of accelerated pace of interest rate hikes in the United States (US), the Asian Development Bank’s (ADB) latest Asia Bond Monitor said.