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After a strong start to the year, global emerging market local currency debt issuance has taken a beating amid the volatility sparked by fears of a reduction in US quantitative easing. Local currency markets are more important than ever — but for stability to be achieved, the institutional investor base must broaden. Philip Moore reports.

Latin American companies have been busily diversifying their funding sources in recent years, attracting strong demand for local currency bonds sold to global investors. That demand is having a big effect on what is achievable: coupons have fallen and tenors have risen, making global local deals a viable alternative. Philip Moore reports.

Hong Kong’s equity market was sent into a frenzy last week after it was confirmed that IPO talks between Alibaba Group and the city’s exchange had broken down, sparking a war of words in the press by senior management from the two sides. While it may seem ludicrous for the Hong Kong Stock Exchange to let such a huge IPO slip through its fingers, it was the correct decision.

A surge in corporate mergers and acquisitions in 2013 has been fed by a record total of M&A-related investment grade bond financings. With C$27bn of total corporate issuance so far this year, bankers think 2013 could prove to be the Canadian market’s busiest year yet. Stefanie Linhardt reports.

Indonesia’s banking sector is far stronger today than during previous times of financial stress in the economy, and appears well set to weather the coming storm. But it is so well capitalised that new funding in the international markets is a rarity. By Chris Wright

It is a luxury, being a speculative grade-rated company in Canada. With the vast North American market on its doorstep, a Canadian issuer can choose between the mother of all junk bond markets, the US, or the steadily evolving Canadian high yield market. Stefanie Linhardt reports.

The investor base for Maple bonds is growing, more corporate issuers are keen to visit Canada and even the yield curve is extending. Nathan Collins looks at the Maple market as it tries to shake off a reputation for illiquidity and FIG dominance.

It has been a year of divergent fortunes for Indonesian corporate debt. The first few months of the year were characterised by endless liquidity, an environment in which low rated borrowers could access remarkably cheap funding. Then everything changed. Chris Wright asks when — and in what form — the markets will return.

After five years as the safe haven’s safe haven, the Canadian government bond market is facing up to lacklustre domestic growth, low rates and an increasing dependence on the US to boost the economy. But, as Ralph Sinclair discovers, now might not be the time to dump your Canadian govvie holdings.

Canada’s provinces and crown corporations, like their sovereign, have been inundated with investor interest from overseas since the financial crisis began. As the Canadian economy grew, so did international Canadian dollar portfolios. Ralph Sinclair discovers that cash is attempting to reach ever further into the Canadian public sector.

Any concerns about Indonesia’s fiscal position are belied by the continuing popularity of its sovereign debt, as September’s sukuk issue demonstrated. Indonesia’s international funding is still heavily dominated by the dollar, but if that is where it can find an adoring investor base, why go further afield? By Chris Wright.

Worries over the end of quantitative easing in the US have turned investors cautious over many emerging economies, and Indonesia has not been immune from capital flight. But it has been resilient, and its promise remains, as Chris Wright reports.