There's a Bottleneck in Asia's High Grade Bond Market
- Chinese state company debt sales to swell issuance pipeline
- Investment-grade spreads to widen on supply increase: Guotai
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Asia’s top-rated bond issuers are facing an uptick in borrowing costs as some of the region’s biggest companies race to the market to refinance debt.
Investment-grade borrowers issued 80 percent of the record $78 billion in dollar bonds sold in Asia excluding Japan last quarter as companies sought to lock in funding before the Federal Reserve boosted benchmark rates. With the Fed poised to tighten further and France’s presidential election looming, that issuance rush is expected to continue -- but at a price.