US demand fuels Kia Motors' $500 million bond

Asia’s G3 bond market has been on a shaky footing during the past week, thanks to a confluence of events, from the debt crisis in Greece and weak equity markets to the disappointing US non-farm payrolls data released last Friday.

In particular, the high-yield bond market on a roll so far this year has been vulnerable to bad news. Investors were rattled by a research report released last week by short seller Carson Block on Toronto-listed Chinese company Sino Forest, questioning the company’s audited accounts and business model.

The company has since denied these allegations, but investors remain wary and are becoming disenchanted with the sector.