The Changing Landscape of Asia's Speculative-Grade Bond Market: A Panel Discussion

Tuesday, 19 March 2024, 06:38

The Asia speculative-grade bond market is experiencing a significant contraction, with Chinese developers facing multiple defaults in recent years. Issuance plummeted by 90% in 2022 and a further 40% in the following year. Amid this decline, a shift towards local-currency bond markets and a surge in private credit investments is reshaping the investment landscape. A panel discussion highlighted the evolving trends in the market, emphasizing the growing interest in diverse debt instruments across the U.S. and Asia.
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The Changing Landscape of Asia's Speculative-Grade Bond Market: A Panel Discussion

Asia's Shrinking Speculative-Grade Bond Market

The speculative-grade bond market in Asia has witnessed a notable downturn, with a notable decline in issuance and an increasing number of defaults by Chinese developers.

Transition Towards Alternative Markets

S&P Global Ratings suggests a shift towards local-currency bond markets and a rise in private credit investments, indicating a transition in the investment landscape.

Expanding Opportunities for Investors

Institutional investors are diversifying their portfolios to include a mix of U.S.-dollar bonds, local-currency debt, and private credit allocations, reflecting a broader outlook on the Asian speculative-grade markets.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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