2018-09-27, Mizhuho Securities Asia believed that Aisa’s High Grade Issuers would face headwinds as Fed hikes.
The yield on better-rated Asian corporate dollar bonds, which account for about three quarters of issuance from the region this year, rose to a seven-year high of 4.5 percent this week as they tracked U.S. interest rates, an ICE BofAML index shows.
As see the chart below, the borrowing costs for better-rated Asian companies rose to highest since 2011.
On the other hand, spreads on Asian investment-grade dollar bonds still below five-year average as shown:
Bloomberg, Finbarr Flynn & Narae Kim, 2018-09-27, “Mizuho Sees Headwinds for Asia’s High-Grade Issuers as Fed Hikes”