Asia Pacific

A trio of Thai issuers raised funds in the bond market this week, showing that, despite falling issuance, opportunities are still there for companies that need to fund. But after attracting foreign issuers earlier this year, the Thai baht market looks unlikely to tempt them back soon.

Shougang Corp, the Chinese steel maker, raised Rmb9bn ($1.3bn) on Wednesday in the biggest corporate bond launched this week in China’s robust domestic market

Legend Holdings, the state-linked part owner of Chinese computer maker Lenovo, received a remarkable wave of orders for its Rmb2bn ($293m) bond on Tuesday in a deal that shows the financial crisis has not yet affected China’s domestic currency markets.

The Thai Bankers’ Association has pressed for foreign issuers to be banned from selling bonds denominated in Thai baht, in an effort to conserve liquidity for purely domestic debt sales.

Vietnam Shipbuilding Industry Corp (Vinashin) this week won approval to sell D3tr ($181m) of corporate bonds in what will be a test of appetite for new issues in the country’s troubled domestic market.

Following Lehman Brothers' collapse, rival investment banks are cherry-picking the carcass for talented staff. But the longer term ramifications are ominous. The bank was heavily involved in credit derivatives, and its demise will sour confidence in structured products and derivatives. Naomi Rovnick, Ruth David, Pamela Tang, and Richard Morrow report.

Nomura this week bought the investment banking and equities businesses of Lehman Brothers in Europe and the Middle East.

Chinese and Korean borrowers sold a number of local currency bonds this week, proving that the ringgit market was not the only one to escape the financial maelstrom that continues to cause havoc in the global markets.