Party is back on - thanks Ben

Четверг, 19 сентября 2013 16:28 MSK
 

* Asian issuers rush to issue bonds amid rally

* Another record year for dollar bonds in sight

* Gains raise bubble questions

By Christopher Langner

SINGAPORE, Sept 19 (IFR) - The Fed chairman lived up to his nickname of Helicopter Ben this week and walked out of the FOMC meeting saying the central bank will continue to buy US$85bn a month of Treasuries and mortgage-backed securities.

The unexpected delay in the tapering of monetary stimulus prompted credit markets to gap in. The yield on the 10-year US Treasury dropped 15bp right after Bernanke spoke, and Asian dollar bonds not only followed, but their spreads tightened 5bp-10bp more today.

The moves had bankers scrambling to turn more deals live before the Fed reverses its stance.

On Thursday alone, three mandates were announced, two of them from Chinese state-owned companies, which analysts expect to come in size. In fact, talk was that the more than 20 issuers that have met investors in the past couple of months without printing any bonds afterwards will be elbowing for room with a swathe of other companies.

"The party is back on, at least for now," said one banker in Hong Kong.   Продолжение...