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
Overall issuance in Asia for volume was up YoY for 1Q21, with total issuance in Q1 at US$120.4bn (Up 24.6% from US$96.57bn in 1Q20). January 2021 saw the highest volume ever printed in a single month(US$69.1bn) in Asia G3 primary bond markets. As yields begin to climb in Q1, issuers shifted new issue focus to the 5-10 years part of the curve which saw a significant increase in new bonds. Perpetual and FRN issuances saw steep declines. 229 new deals and 274 bonds were issued, compared to 171 deals and 200 bonds in 1Q20. In the ESG Space, issuance volume has seen a tremendous growth of around 6.03x from around US$2.8bn in 1Q20 to US$17.06bn in 1Q21.