Andrew Wong, a credit analyst at OCBC Bank in Singapore, said that the slow pace of new dollar bond issuance by Asian companies, coupled with the rise in interest rates after the Fed signaled further interest rate hikes, may tighten spreads on dollar bonds in the secondary market in Asia.
The Asian dollar bond primary market will still favor high-quality borrowers who can withstand rising funding costs amid a likely recession, while high-yield bond markets will remain under pressure.