Lawyers are set to play an important role in
shaping disclosure standards in high-yield in Asia, as new
market developments facilitate their further involvement.
Panelists at a high-yield conference co-sponsored
by Asia Securities Industry & Financial Markets Association
(Asifma) and Latham & Watkins said that due to the lack of
regulatory oversight on the instrument the market essentially
sets the standards itself.
Market participants warned that issues need to be
of a high quality to continue to attract investors, and that
they bear responsibility for protecting Asias nascent
Its incumbent that those of us in the
room who work with this product apply the right level of rigour
we are the gatekeepers, we need to make sure that the
process is done right, said Clifford Chances
Latham & Watkins Bryant Edwards, a former
chair of the European High Yield Association, said that the
market itself set the high disclosure and accounting standards
for high-yield issues; there is little substantive regulation.
Furthermore the deals are never registered with the Securities
and Exchange Commission (SEC) and they are generally listed on
the unregulated side of exchanges.
The instrument has been developed through an
ongoing dialogue between investors and issuers utilising
lawyers and investment bankers as intermediaries, Edwards
commented. The market relies on lawyers, underwriters and
advisors to deliver international best practices in
structuring, accounting and disclosure.
To establish such standards, panelists agreed that
there must be more dialogue about high-yield to further develop
Many panelists mentioned the discourse prompted by
establishment of the European High-Yield Association as a key
reason for the rise of high-yield in Europe. Similar
development could soon begin in Asia.
Mark Austen, CEO of Asifma, said Asifma was
currently exploring member interest in creating a high yield
committee in the near future, which would hopefully result in
further development of the high-yield market
For more please attend IFLRs Asia Capital
Markets Forum this Thursday, November 15. More details can be
found here: http://www.iflr.com/ACM2012
The latest Asian high yield
disclosure trends explained http://www.iflr.com/Article/3117372/Equity/The-latest-Asian-high-yield-disclosure-trends-explained.html
Why investors should avoid ChinaCo
USD high yield http://www.iflr.com/Article/3117375/Capital-markets/Why-investors-should-avoid-ChinaCo-USD-high-yield.html
Why Basel III could jumpstart
Asias high yield market http://www.iflr.com/Article/3115624/Capital-markets/Why-Basel-III-could-jumpstart-Asias-high-yield-market.html