With analysts noting that markets are “taking the Fed’s tightening policy in their stride,” demand for emerging-markets debt is so strong that Bloomberg reports one of Asia’s poorest nations is mulling a debut dollar-bond sale… Papua New Guinea.
The southwest Pacific nation plans to raise $500 million in five-year bonds, central bank governor Loi Martin Bakani said Tuesday at the Credit Suisse Asian Investment Conference in Hong Kong. The country would join Mongolia among sub-investment grade issuers in 2017. Sales of high-yield bonds total almost $15 billion so far this year, according to data compiled by Bloomberg.
‘There is strong appetite for frontier issues — and markets have taken the Federal Reserve tightening policy in their stride,’ Stuart Culverhouse, chief economist at Exotix Partners LLP in London, said by phone. Issuers in the single-B tier — the second-highest in the junk rating scale — have found yields ‘are not prohibitively high for their financing needs,’ he said.
This post was published at Zero Hedge on Mar 30, 2017.
Follow on Twitter
Recent Comments