The bonds of summer: primary markets are go as LG Chem smashes records

The GlobalCapital Podcast

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◆ "Nobody on the road, nobody on the beach," as issuers spy their chance
◆ Why SSAs are in prime position for the rest of the year
◆ A record breaking deal in Asia's equity-linked bond market
Don Henley lamented the lack of people on the road and the beach in his song The Boys of Summer. Some in the bond markets might be thinking the same almost 40 years later as there appears to be very little let-up in issuance activity, putting paid to the old saw that summer is an idle period for primary markets.

We find out why bank issuers in particular are looking for opportunities to raise debt capital and what the risks could be of entering the corporate bond market.

One issuer group in a strong position, however, is SSAs. We find evidence in a syndication from the EU this week that the balance of power lies very much with the borrowers.
Meanwhile, LG Chem issued a stunning dual tranche $2bn exchangeable bond this week, smashing all sorts of records in the process. We examine the deal and find out discuss the next lot of equity-linked issuance is coming from given the clear investor appetite for the product.