15th Asia Bond Markets Summit – Webinar Series
Asia’s Capital Markets: Response, Recovery, Resiliency
November 2020

The Covid-19 pandemic is the biggest black swan event since 2008’s US financial crisis. But it is a crisis like no other, decimating economies across the globe. Governments in the Asia-Pacific region have responded by throwing together unheard of relief packages, the biggest in modern history. Years of fiscal discipline and prudent debt management, meanwhile, have given a number of countries some wiggle room. Indonesia and the Philippines, for instance, have tapped the offshore capital markets to raise funds as buffer for what is likely to be an uncertain road to recovery. These issuances, which were made at the height of the virus outbreak and achieved the lowest coupon ever, are an affirmation of global investors’ confidence. During this time, the ability to tap different pockets of liquidity is also critical.

One of the themes notable during the first half of the year was issuers launching bigger-sized and longer-tenor deals, which were uncommon in previous years. Another interesting feature in 2020 is the prevalence of green, sustainability, social, and Covid-19 bonds issued by a diverse range of companies from China, Korea, Thailand, the Philippines, and Indonesia. The pandemic-induced health emergency highlights the region’s need to do more to overcome the challenge of climate and social change, and pivot to a sustainable future.

The strength of the offshore capital markets is matched by the stability of the domestic markets. Bonds outstanding in emerging East Asia totalled US$16.3 trillion at the end of March 2020, representing an increase of 4.2% from end-December 2019 and 14% from March 2019. With funding requirements to remain elevated for the foreseeable future, the ability of governments to issue in their domestic markets will be critical, even as government bonds already account for the majority of local issuances, representing 60% of the market or US$9.9 trillion. Meanwhile, with social distancing, government treasuries are experimenting with new ways of distributing bonds, including using distributed ledger technology.

The Asset Events+ is pleased to be hosting the 15th annual Asia Bond Markets Summit on the theme – Asia’s capital markets: response, recovery, resiliency. The annual gathering of thought leaders and industry participants will discuss the implications of Covid-19 on the capital markets and the shape of the future of financing.

 
 
Part 1 – Predicting the post-Covid-19 future
November 2020 | 5:00 - 6:00 pm HKT
16:45 (HKT)
Access to webinar opens
17:00 (HKT)
Exclusive Discussion
Asia’s capital markets have passed the stress test in the first six months of the Covid-19 pandemic. But the road to recovery is uncertain with risks tilted to the downside.
  • What issues are vital for corporates in the post-Covid-19 world?
  • How will investors approach markets that are faced with elevated stress and with potential pitfalls ahead?
  • With rates lower for longer, how will the search for yield evolve and impact types of issuers coming to the market?
17:50 (HKT)
Q&A
18:00 (HKT)
End of discussion

Part 2 – Is sustainability-linked debt the way of the future?
November 2020 | 5:00 - 6:00 pm HKT
16:45 (HKT)
Access to webinar opens
17:00 (HKT)
Exclusive Discussion
With an increasing number of issuers keen to launch green, social and sustainability bonds, are Asia’s capital markets approaching that inflection point?
  • As investors in the region shift their asset allocation toward ESG instruments, how are metrics in Asia’s capital markets changing?
  • Are issuers incentivized to issue more sustainability-linked instruments and is Covid-19 that tipping point?
  • What metrics matter to investors and how are they captured in fixed income instruments?
17:50 (HKT)
Q&A
18:00 (HKT)
End of discussion

Part 3 – Outlook for Asian high yields
November 2020 | 5:00 - 6:00 pm HKT
16:45 (HKT)
Access to webinar opens
17:00 (HKT)
Exclusive Discussion
A casualty of Covid-19 at the height of the outbreak is the drying up of high-yield new issues. First half volume is down by more than 34%. But as China started to contain the virus, the market reopened, led by Chinese property issuers. Investors’ demand picked up just as swiftly. The reasonable secondary market performance is somewhat surprising given the challenging outlook.
  • How were high yield issuers able to return amid Covid-19 fears?
  • Despite the attractive yields, are investors pricing in correctly the risk?
  • Beyond China, what other high-yield issuers are expected to come to the market?
17:50 (HKT)
Q&A
18:00 (HKT)
End of discussion

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