Augusto King
We have seen another year of record debt issuance in Asia. Why?
Debt issuance has already exceeded $100 billion, compared to $73 billion in 2011. There are several reasons for this record volume. First, the European debt crisis reduced banking exposure to Asian corporates. Corporates therefore need to borrow from regional and local banks, or issue bonds in the capital markets. Local borrowers have asked for US dollar funding from their local banks; as a result, their banks must issue international bonds to obtain such funding.
