The IFR Asia High-Yield Roundtable took place on October 6, 2020 amid a period of intense scrutiny on the region’s sub-investment-grade debt market.
After a remarkable rebound from the lows of late March, high-yield bonds briefly came under pressure again in late September as a result of a credit scare involving China Evergrande Group that ended just as suddenly as it began.
The average yield on the JPMorgan Asia credit index for non-investment grade issuers hit 7% in early September, down from over 11% in March and within 15bp of February’s lows. Amid renewed concerns over the Chinese property sector, the benchmark has settled at around 7.6% in October.
Sponsored by Allen & Overy, Fitch Ratings and Haitong International Securities, this IFR webcast provided an update on Asia’s lower-rated credit markets from both the buy-side and sell-side perspectives.
The panel shed new light on regulatory moves to limit debt risks in the Chinese property sector, the impact of Covid-19 across Asia, and recent developments affecting legal documentation and covenants designed to protect investors.
In particular, the discussion highlighted the challenge in expanding the Asian high-yield market beyond the dominant Chinese property sector, revealing a genuine demand for diversification.
Next: Meet the panelists, watch the replay on demand, and read the edited highlights.
To see the digital version of this roundtable, please click here
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