MANILA, Philippines – The Philippine bond market posted the fastest growth in emerging East Asia in January to September this year, according to a report released by the Asian Development Bank (ADB).
The country’s corporate bond market expanded 11.3 percent in the third quarter, and 37.6 percent to $17 billion after nine months in 2014.
“It is the fastest quarterly and annual increases in emerging East Asia, fueled by offerings from SM Prime Holdings Inc., GT Capital Holdings Inc., Aboitiz Power Corp., and Security Banking Corp., which led bond and Tier 2 note issuances during the July-September period, ADB said.
The report likewise stated that the Philippine government bond market expanded 0.7 percent in the third quarter and 2.2 percent in the first nine months of 2014 to $86 billion.
The Bureau of Treasury (BTr), however, has rejected some bids for its Treasury bills as the market continued to seek higher yields amid rising inflationary concerns and the central bank policy rate increases.
Meanwhile, the ADB’s latest Asia Bond Monitor (ADM) said a faster-than-expected US interest rate hike and a stronger dollar could pose problems for East Asia.
ADB Office of Regional Economic Integration head Iwan J. Azis said higher US rates and a stronger dollar could prove to be a challenge given increased foreign holdings of Asia’s bonds, which could easily reverse, and record US dollar bond issuance by the region’s companies.
“US dollar debt becomes more expensive to service in local currency terms when the dollar appreciates,” Azis added.
Other challenges may rise from tightening liquidity in the region’s corporate bond markets as Basel 3 requirements deter banks from holding large bond inventories, and a weaker property market in the People’s Republic of China (PRC), given many property developers are highly indebted.
Meanwhile, borrowers from emerging East Asia sold $143.5 billion in dollar, euro, or yen-denominated bonds in the first nine months of 2014, a new annual record and surpassing the $141.5 billion issued in the whole of 2013.
China is the largest issuer, selling $65.9 billion – or 46 percent of the total – followed by the Republic of Korea which sold $26.3 billion.
Despite the risks, emerging East Asia’s local currency bond markets continue to expand.
After nine months, there were $8.2 trillion in such bonds outstanding, 3.1 percent higher than at the end of June and 11.3 percent more than a year earlier. –Ted P. Torres (The Philippine Star)
September 18 –
International Equal Pay Day
“Increase wages now,
more than other cost items.
For widespread, practical equality!”
Invoke Article 33 of the ILO Constitution
against the military junta in Myanmar
to carry out the recommendations of the 2021 ILO Commission of Inquiry
against serious violations of protocols of
Forced Labour and Freedom of Association.
Accept the National Unity Government (NUG)
of Myanmar. Reject Military!
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October –
Monthly Observances:
Industry and Commerce Safety Month
National Statistics Month
Local Government Month
Consumer Welfare Month
Cooperative Month
National Quality and Productivity Improvement Month
National Health and Wellness Tourism Month
National Indigenous Peoples Month
Weekly Observances:
Week 1: Elderly Filipino Week
Week 2: National Health Education Week
Local Government Week
National Mental Health Week
October 17-23:
National Week for Overcoming Extreme Poverty
October 18 – 24:
United Nations Week
Last Week:
Nurses’ Week
Consumers’ Protection Week
Week of the 4th Sunday:
Barrio Farmers’ Week
Daily Observances:
First Monday (Oct 4): Universal Children’s Day i
n the Philippines
Oct 5: National Teachers’ Day
Oct 10: Local Government Day
Third Thursday (Oct 14): Conflict Resolution Day
Oct 21: Tenants’ Emancipation day
Oct 24: United Nations Day
Oct 29: National Indigenous People’s Thanksgiving Day
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