Corporate bond market

“Low and falling government bonds yields can trigger a rush to add risk in order to lock in a higher level of yield. This is not bad in itself – as investors, we are paid a return in order for taking on a risk. However, not all risks are the same and some inevitably turn out to be landmines, especially when the economic cycle comes to an end,” noted Manpreet Gill, head of fixed income, currency, and commodity strategy at Standard Chartered Bank. … [Read more...] about Corporate bond activity welcome as market shocks persist unabated

Corporate bond issuance expected to drop after new policies take effect Warnings from management agencies plus new policies that take effect soon will make it more difficult to issue corporate bonds, a capital mobilization channel that was worth $8.5 billion in the first seven months of the year. … [Read more...] about Investors still pouring money into corporate bonds, despite warnings

Many businesses do not specify the purpose of their issuance. This lack of transparency poses risks to investors, and this risk of default is intensified when companies issue bonds with higher coupon rates, and in turn use the funds they receive through issuances to pay off bank debts or redeem earlier bonds that have reached maturity. In this regard, Decree 81 specifically expands the requirement to disclose the purpose of raising capital through bonds, requesting issuers to specify projects, activities, or business plans needing funds, and debts to be financed. … [Read more...] about Government urges caution on corporate bond risks

Earlier, the Finance Ministry advised corporate bond investors to access sufficient information and learn about all the possible risks. For instance, investors should ask issuers and agents to provide information about their financial situation, including that related to their bond mobilization such as issuance volume, debt, interest and principal payment. … [Read more...] about Individual investors wary of corporate bonds

Also in this period, the state divested VND25.17 trillion (nearly $1.1 billion) and collected VND171.84 trillion ($7.47 billion), which was 6.8 times higher than the book value. Total money collected from equitisation and divestment since 2016 reached more than 218 trillion ($9.47 billion), which is 2.79 times higher than the total revenue from equitisation and divestment in the 2011-2015 period (about VND78 trillion or $3.4 billion). The money transferred to the state budget under the National Assembly resolution hit VND211.5 trillion ($9.2 billion) out of VND250 trillion ($10.87 billion), tantamount to 85 per cent of the plan for the 2016-2020 period. … [Read more...] about How to drive the economy by reforming state-owned debt