Tapping the Asian bond universe

ON ASIA PACIFIC

Asia's economic growth has and should continue to exceed that of the rest of the world. There are few who dispute that claim. Along with that growth, there has come the rapid development of the corporate bond market.

Historically, corporations in the region predominantly relied on banks for funding. And that is still much the case. But as excess savings decline, banks are finding themselves with tighter liquidity conditions, resulting in tighter lending standards. Accordingly, an increasing number of companies are diversifying their funding sources by issuing bonds, either in their local currency or in US dollars. Standard & Poor’s Ratings Services forecast that the Asia-Pacific debt market will reach $32trn outstanding by 2017, in its 14 May 2013 report titled The Credit Cloud: China Will Leapfro...