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Emerging Markets

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Business has sagged in the third quarter, but the pipeline is busy, despite an intractable war
Private bonds are now being offered in the open market wider than where public deals trade
Even as USTs stay near 5%, supply expected to pick up

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  • Investors are turning their attention to 2019, hoping for better returns than 2018 afforded. Despite the US Federal Reserve’s rate hiking ambitions and uncertainty over a US/China trade war, investors are looking forward to next year.
  • State Bank of India’s $500m loan is now in limited syndication after the senior lenders were mandated in October.
  • Policy lender China Development Bank printed a dual-currency, three-tranche transaction on Tuesday, raising $2.4bn-equivalent. While it paid just a couple of basis points of new issue premium for the dollar bonds amid a short-lived market rally, demand for the euro portion exceeded expectations.
  • Patrick Kwan, the former co-head of Barclays’ investment banking unit in Asia, has returned to the banking industry with Credit Suisse.
  • The political upheaval in Sri Lanka since October led S&P and Fitch to downgrade the sovereign’s ratings this week, following a similar move by Moody’s in November. All three agencies have pointed to heightened refinancing risks, with a weak rupee and rising bond yields restraining the country’s access to capital markets.
  • Zhuji Development, a Chinese local government financing vehicle from the Zhejiang province, has made its international bond debut with a well-anchored deal.