Moody’s Investors Service says that the Asian high-yield bond market has shown record levels of rated issuance across all markets in 2017, with momentum set to carry into 1Q 2018. “A total of $34.5 billion was issued in 2017 — up significantly from $11.4 billion in 2016 and well above the previous record high of $23.3 billion in 2013,” says Annalisa DiChiara, a Moody’s Vice President and Senior Credit Officer.
Meanwhile the Asian Liquidity Stress Indicator (ALSI) decreased to 26.2% at 31 December 2017 from 27.3% at 30 September, indicating refinancing risk remains for some existing issuers. Although the reading remains above the long-term average of 23.1%, it marks the strongest year-end reading since December 2014.
A total of $5.1 billion of rated bonds will mature by 31 December 2018 and $162.3 billion of rated and unrated bonds will mature through to 2021. A total of 10 issuers accounted for 37.5% of the $76.7 billion of rated debt outstanding at 31 December 2017.
