Asia’s dollar bond market hasn’t been this hot for years
Live MintHong Kong: Investors have never been so gung-ho about Asian dollar bonds. “Investors are now looking for carry after being underweight risks due to the market volatility last year,” said Jimond Wong, senior portfolio manager for Asia fixed income at Manulife Asset Management. “We have seen real money buyers return in strength for property names, some of which took a break from the battered high yield market since November last year,” said Joanne Wong, head of debt capital markets at Bocom International Holdings Co. Dollar-debt sales by Chinese builders have been on a tear, with issuance surging to a record $22.7 billion this year, aided by a blistering jump in junk-rated offerings. Wong expects continued supply from developers ahead while “some want to test longer tenors to secure funding for the longer term as investor appetite returns this year.” One notable theme recently is investors are piling into notes with longer tenors amid dampened expectations of interest-rate hikes this year. Having access to longer tenors gives borrowers greater flexibility to manage their debt profiles to avoid maturity walls from building up, said Paul Lukaszewski, head of Asian corporate debt and emerging market credit research at Aberdeen Standard Investments.