FICC Focus Credit Crunch: Around the World of Global Credit in 60 Minutes
Feb 25, 2026
Heema Patel, Europe credit strategist at Bloomberg Intelligence, explains US issuers tapping euro markets and tech-driven euro deals. Reto Bachmann, structured credit specialist, traces AI-driven SaaS sell-offs and CLO reinvestment dynamics. Basel Al-Waqayan, GCC/MENA strategist, covers sukuk growth and geopolitical spread risks. Jason Lee and Tim Tan, Asia credit strategists, discuss Dim Sum versus dollar funding and the surge in Asia convertible bonds.
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Convertible Bond Boom In Asia
- Asia convertible bond issuance surged because Fed rate hikes and higher equity volatility revived convertible arbitrage demand.
- Since April 2024 over $42 billion issued and $3.9 billion in three weeks, offering near-zero funding cost plus equity upside for issuers like Alibaba, per Tim Tan.
Use Converts To Capture Equity Upside With Protection
- Use convertible bonds to get equity upside with downside protection when volatility is high and converts trade with large volatility discounts.
- Tim Tan recommends watching premiums and arbitrage volumes because once macro conditions change issuance can dry up quickly.
Practical Uses Driving Asian Convert Issuance
- Asian issuers use converts for specific needs: Alibaba issued converts to fund buybacks and Taiwanese firms used dollar converts to manage FX after sharp TWD moves.
- Converters provide regulatory and funding-speed advantages over traditional dollar bonds, per Tim Tan.