Bond Issuers Face Regulatory Storm

Recent regulatory actions in the bond market will make it far more difficult for corporate issuers to sell bonds, and will increase refinancing costs and default risks. The new measures target underwriters, ratings firms, accountants, and law firms, making them legally responsible for information disclosed within prospectus documents. Property developers have been the primary defaulters over the past two years, but the new regulatory changes will bring more local government financing vehicles (LGFVs) under pressure.

Posted January 14, 2021
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