Fed’s detailing of its plan for purchasing individual corporate bonds increased interest in the bond market
Institutional treasurers around the world faced an extraordinary interest in issued bonds.
Investors turned to companies’ debt securities after the Fed announced the details of its private sector bond purchase plan this week. This caused a rally in risky assets.
Asia is preparing for one of the busiest weeks since January in terms of dollar-denominated bond sales. Demand for some issuers’ bonds exceeded ten times the targeted borrowing.
While the demand for the Republic of Indonesia was $ 16.7 billion, the Philippines telecommunications company PLDT Inc. received over $ 10.2 billion (more than 17 times the sales) from investors.
With China’s public companies flocking to the market, it does not signal that bond offerings will slow down anytime soon. China National Bluestar and China Construction Bank are in line on Wednesday, following China National Petroleum’s $ 2 billion bond sale.
According to the information provided by the experts, after the spreads fell yesterday in Asian dollar bonds, there was no major change today. At least four borrowers in Asia, including Shengzhou Investment Holdings, want to sell bonds on Wednesday. Around 13 billion euros ($ 14.6 billion) were raised in the primary market in Europe on Tuesday.