India and Indonesia regulators limit HY supply

Author: Ashley Lee | Published: 6 Nov 2014

India and Indonesia are expected to drive Asia’s high-yield market. But local regulations may limit offerings to quality issuers, a development welcomed by market participants.

The past few weeks have seen a flurry of high-yield offerings from India, with more deals from Indonesia in the coming weeks anticipated.

But local regulations from both jurisdictions may slow issuance – and that may not be a bad thing for the long-term health of the markets.

"A lot of those new ratings were desperados, of sorts"

Brad Gibson, portfolio manager at AllianceBernstein, said that new issuers may be scarce in the short-term, due to concerns around dollar...