Sunday, 22 December 2024
Citi sees 20% increase in Asian international bond issuance in 2024
Citi expects $160 billion in issuance in Asia, excluding Japan, for international bond issuance in 2024, up from $130 billion in 2023, reflecting an increase of 20%. Close to $15 billion had already been issued in January.
Rishi Jalan, head of debt syndicate at Citi Asia, said: “We are already seeing a strong start to issuance in 2024, and a number of factors should support both supply and demand in the coming year. We look to see a 20% increase in issuance in the year ahead.”
Market sentiment increasingly suggests that we are on top of the rate cycle, and the market is widely expecting the Fed to cut rates this year.
Some issuers are able to obtain lower yields/coupon on their transactions, while many investors are able to make gains on their portfolios, as yields move lower.
A total of $250 billion in Asia issuer refinancing is due in 2024 in the G3 bond markets (not all will come back to the bond market, as we saw last year). The redemption in 2023 was $217 billion, and we saw a new issuance of $126 billion.
Re-disseminated by The Asian Banker
