China's Bond Binge Is Good News for Other Asian Borrowers: Chart
(Bloomberg) -- Asian dollar-bond investors are looking for some diversification from Chinese borrowers as issuers from the nation have more than doubled sales to $35 billion from June 1, helping push out spreads. The yield premium offered over U.S. Treasuries by Chinese corporate bonds rose nine basis points since the start of June, while for Indian and Indonesian notes, it fell 17 and 13 respectively. Corporate bonds in Indonesia have benefited as the “commodity cycle is turning better” and the strengthening this year of the Indian rupee against the U.S. currency is helping companies there repay their debts, according to Raymond Chia, head of credit research for Asia ex-Japan at Schroder Investment Management Ltd.
To contact the reporter on this story: Lilian Karunungan in Singapore at lkarunungan@bloomberg.net.
To contact the editors responsible for this story: Tomoko Yamazaki at tyamazaki@bloomberg.net, Finbarr Flynn
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