Outlook for the week
We view high yield bonds as more favourable given historically cheap valuations and higher buffers against rising interest rates.
Key economic releases for the week
Last Week Summary
Primary issuance in Asia G3 markets remain active last week, with issuers from a diverse
group of countries. Korean online services giant Naver Corporation made its debut in the
dollar market with a 5-year USD sustainability bond. As the only Non-China IG issuer this week, the deal received enthusiastic demands from the market, resulting in the deal 6 times covered. GLP China’s new 5-year bonds proved to be the best performing new issue this week in secondary trading, having traded more than 20bps below reoffer, as of this morning. US$5.88bn of bonds was issued from 10 deals. Breakdown: Investment Grade: US$2.75bn, High Yield: US$2.83bn, Non-Rated: US$300mm.
5 outstanding mandates were announced during the last two weeks.