How do you explain the recent surge in Asian US dollar-denominated bond issuance
The market has become more diversified in terms of borrowers, and the new issue pipeline has become fuller as signs of economic recovery in the region have grown and as investors' risk appetite has also risen. Although US dollars is not the natural currency for financing by most Asian entities, and the usual source of funding is the local bank market first and the domestic bond markets second, the yield spread compression over the past few months and historically low absolute rates in the dollar bond market, has made it attractive for both...
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