Director Renu Menon quoted in Singapore Business Review article 'Investors steering clear of weak corporate bonds as default risks rise’
22 Jan 2020
Renu Menon, Deputy Head, Banking & Finance, was quoted in a Singapore Business Review article ‘Investors steering clear of weak corporate bonds as default risks rise’.
The article discussed how companies in weaker sectors will likely face refinancing risks this year as investors go for higher-grade corporate bonds and issuers with strong track records.
Renu commented on recent market trends stating, “investors have been more prudent and astute in choosing bonds, and there is an increased demand for tighter covenant terms that would afford bondholders with greater protection”. She added that “this is likely influenced by a number of notable defaults in recent years and as weaker economic conditions are expected to send more companies into distress”.
The article also noted a greater interest in perpetual bonds, retail bonds and notable issuances from statutory bodies.
Experts forecast the outlook for Singapore’s debt capital market in 2020 to remain robust and is expected to play a prominent role in raising finance for development and infrastructure spending in the region. Renu highlighted that “investors may continue to favour the bond market and investment-grade issuers are expected to continue to dominate the market”. She also pointed out that “new entries, both local and foreign, are anticipated to make their presence known as infrastructure bonds gain momentum”.
You may read the full article on Singapore Business Review here.