US election 2016

The FIG primary market has largely remained quiet ahead of the US election on November 8, and some borrowers desiring funding have even sought ways around having to get caught up in its aftermath.

Government bonds across the developed markets are among the main winners of a sudden about-turn by investors away from riskier assets, which analysts are blaming on poll figures suggesting that US presidential candidate Donald Trump has moved ahead of rival Hillary Clinton.

Home to the world’s largest capital market, the US has what it takes to redraw the global heat map of renminbi internationalisation (RMBi) now that it has been awarded a clearing bank and the world’s second largest RMB investment quota. Yet this potential could be squandered by the upcoming presidential elections unless market forces prevail.

US election jitters are weighing on Asia’s equity and debt capital markets, leaving bankers split over the best course of action for issuers before the November 8 vote. Some are advising clients to make full use of the next fortnight, while others are advocating hanging back and rolling with the punches in the aftermath of the result. John Loh reports.

Lat Am bond bankers said that Donald Trump’s floundering campaign to become US president could help Mexican borrowers as utility Comisión Federal de Electricidad (CFE) returned to bond markets with a 10 year benchmark.

US corporate issuance came close to registering a record volume for September as triple-B rated borrowers lapped up strong demand on either side of the US Presidential debate.