Outlook for the week
We view high yield bonds as more favourable given below historical average valuations (Figure 3) providing higher buffer against rising interest rates.
Key economic releases for the week
Last Week Summary
Asia primary debt market activity remained high with 3 jumbo deals priced. Average number of accounts participating in deals last week increased to 155.4 accounts, up from 112.4 accounts the previous week. Indonesian issuers were actively coming back to the offshore market, issuing US$4.75bn last week – 33% of Indonesia’s YTD issuance volume. US$16.075bn of bonds was issued from 21 deals. Breakdown: Investment Grade: US$7.6bn High Yield: US$1.615bn, Non-Rated: US$6.86bn.