Asia G3 Q3 Report
For the week beginning 1st October 2018
Asia ex-Japan G3
2018 Q3 Review
Q3 Total Issuance: USD 53.5b
Breakdown: USD 25.8b Investment Grade, USD 11.2b High Yield, USD 2.26b Unrated, USD 9.29b FRNs, USD 3.5b Perpetuals, USD 1.5b Sovereign bonds.
- Total issuance in first three quarters totaled USD 197.4b from 355 deals. A total of 121 banks acted as lead managers and bookrunners, bringing 432 bonds to the market. In comparison, total issuance in the first three quarters of 2017 was USD 244.7b.
- Trend of issuance continues to shift away from perpetual bonds issuance towards FRNs. FRNs issuance has reached USD 36.9b for the first three quarters, a 25.5% increase year-on-year. While perpetual bonds issuance declined 75.6% to USD 7.8b.
- Chinese real estate issuers recovers pace in Q3 after a sharp dip in Q2 as the Chinese government eases policies.
Looking ahead for the week. The People’s Republic of China will look to issue up to USD 3b of bonds. The new issue pipeline has build up steadily with 9 new mandates announced last week.
Issuance of Perpetuals falls but FRNs gains pace.
Maturity profile of issuance continues to skew towards the front end with rising interest rates.
Chinese real estate issuers catches up in Q3 as the Chinese government further eased its policies.