Old hands, new issuers adapt to evolving capital markets

Over the last two years a number of debut issuers have appeared in the Samurai market — and many of them have been back within a year, sometimes less. They have been attracted by consistently improving pricing — which, with a benign basis swap, stays attractive when compared to euros or dollars — as well as the usual attractions of a diversified funding base. Indeed, demand has been so fervent that issuers have begun to cap their deals, something that was unheard of as recently as two years ago but which Japanese investors are also learning to tolerate. Pro-Bond, meanwhile, is still chiefly a market we associate with ING, but with other issuers waiting for their moment, we may be on the cusp of critical mass.