Surge In Dollar Denominated Bond Sales In Asia (JPM)
March 09, 2010 7:13 PM
According to a report by Bloomberg, there has been a surge in sales of dollar denominated bonds in Asia.
Asian companies are taking advantage of the lower borrowing costs of the dollar by issuing more dollar denominated bonds. Sales of dollar denominated bonds have climbed 35% this year, according to data compiled by Bloomberg.
Rajiv de Mello, head of Asian investment for Western Asset Management Co. said, “It’s one of the cheapest times to borrow in U.S. dollars, and at the same time, there’s a lot of cash floating around.
According to JP Morgan Chase & Co. (NYSE: JPM), the extra yield demanded by investors on dollar denominated bonds issued by investment grade companies in Asia has fallen to 2.44 percentage points from 7.62 percentage points in December 2008.
