Convertibles appeal to fixed-income investors

Article Abstract:

Convertible Eurobonds from Asian corporate issuers typically are structured to attract funds specializing in convertible bonds and fixed-income investors. The volume of equity link bonds from Asian corporate issuers totalled $6.13 billion in the first 10 months of 1996 as corporations turned away from underperforming Asian equity markets. In the 1st qtr, 1996, volumes of convertible Eurobonds from Asian issuers totalled $2.1 billion, up from $239 million in the 1st qtr, 1995.

Statistics

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Luring more foreign investors

Article Abstract:

Institutional investors traditionally have avoided Asian bonds in favor of equity investments despite the fact that debt carries less risk than does stock. Institutional investors eschew the Asian bond markets due to a lack of liquidity, tax laws and uncertainty over the risks of credit and currencies. The problem with low turnover in the Asian bond markets will not be ameliorated until more investors become involved.

Public Finance Activities, National Government Liabilities & Debt, Municipal Govt Liabilities & Debt, Liabilities & Debt-State Govt, Evaluation, National debt, Bonds, Bonds (Securities), Local finance, State finance

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Terms of endearment for an Asian first: institutional investors have received warmly Asia's first triple-A rated Euro-convertible bond outside of Japan despite the recent currency volatility

Article Abstract:

First International Computers's $220 million, zero coupon Euro-convertible bond issue was a success. The issue, which was lead managed by UNion Bank of Switzerland, was backed by a $281 million direct-pay letter of credit facility. The issue represents the first Asian triple-A rated issue to be a success outside of Japan after the onset of the turmoil in the currency markets.

Marketing, Securities industry, Securities, Convertible bonds, First International Computers

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