Asia Credit Report, Fourth Quarter 2016

Market Overview and Highlights of Asia (ex-Japan, Australia and New Zealand) debt issuance in Fourth Quarter 2016

Total issuance in 4Q’16 came in at USD 51.5 billion (bn) as of December 31, down 10.2% quarter-over-quarter (qoq) from 3Q’16 (USD 57.4bn) but up 72.2% year-over-year (yoy), inclusive of high grade (HG), high yield (HY), and unrated deals. For the full year 2016, G3 excluding developed markets Asia issuance volume totaled USD 203.4bn, a new high (from 2014’s $201.3bn), and up 20.3% from 2015 full year volumes (USD 169.2bn). EM sovereign issuance continues to dominate G3 bond market headlines.

Domestic CNY Issuance

Total domestic CNY issuance stood at USD 151.3bn in the fourth quarter of 2016, down 25.3% from second quarter volume (USD 202.6bn) and a decline of 19.4% yoy (USD 187.6bn). By tenor, 54% of fourth quarter issuance (USD 81.4bn) would mature in five years or less, followed by the 7 – 10 year bucket (USD 23.8bn, or 24% of issuance). By sector, finance led issuance totals (USD 49.8bn), followed by transportation (USD 21.6bn).

For the full year 2016, domestic issuance outpaced 2015 volumes with USD 753.3bn issued compared to USD 558.4bn in 2015. Although a 34.9% increase from 2015 volumes, 2016 volumes remain well below the domestic CNY issuance high of USD 979.7bn in 2012 as Chinese companies turned increasingly toward the equity market for funding in the fourth quarter and beginning of 2017.

Offshore Renminbi (CNH) Issuance

The pace of issuance picked up on a qoq basis in the fourth quarter, reflecting largely seasonal variation. For the fourth quarter of 2016, an equivalent of USD 6.4bn in CNH bonds were issued, an increase of 18.8% qoq but a decline of 24.9% yoy. In terms of tenor, nearly all of fourth quarter issuance was accounted for by transactions with tenors of 5-years or less, with nearly half from short-term paper (USD 2.9bn). HG deals rated A+ totaling USD 1.4bn had the highest share among rated deals (21.1%). In terms of sector, finance transactions totaling USD 3.0bn accounted for the largest volume of deals by sector (46.5%), followed by sovereigns, totaling USD 2.0bn (representing 31.5% of issuance). For the full year 2015, offshore CNH reached USD 21.2bn, down significantly from full year 2015 volumes of USD 29.4bn of volume as onshore issuance took precedence.

About the Report

Done in partnership with ASIFMA, the Asia Credit Report is a quarterly report on the trends and statistics of the Asian bond market, including both the investment grade and high yield bond market. Additional statistics on the G3 and CNH markets are also included.

For more information on ASIFMA’s efforts in Asian fixed income, please visit ASIFMA.



  • Executive Director, Fixed Income: Vijay Chander

SIFMA Research

  • Managing Director, Head of Research: Kyle Brandon
  • AVP: Sharon Sung