New bond issuance especially higher beta names could struggle to price competitively in the coming days. The ongoing US debt ceiling debacle could prompt credit investors to demand higher premiums, which are hovering around the 5bp-10bp level, according to experts.
“At the moment, premiums are relatively negligible but, as you move to the end of this week, that may increase a little bit,” said a Hong Kong-based debt syndicate banker to FinanceAsia. “High beta credits are going to have to pay a bit more.”
There were signs of stepped-up efforts in the US on Monday to resolve the fiscal crisis, with President Barack Obama saying...
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