Asia credit market heats up as issuers rush to beat tariff wave

6. Malaysia – Asia’s Hidden Gem for Nomads Malaysia’s DE Rantau Nomad Pass is one of the best-kept secrets for remote workers. Kuala Lumpur offers modern co-working spaces, fast internet, and luxury living at budget-friendly prices. If city life isn’t your thing, escape to Penang’s artsy streets or Langkawi’s pristine beaches. Best of all, you get to enjoy amazing street food for just a few dollars. Visa Duration: 12 months (extendable for another year) Why Choose Malaysia? Affordable cost of living, incredible food, and easy travel to Southeast Asia. (Image: Canva)

The countdown to US President Donald Trump’s next round of tariffs has fueled a frenzy of activity in Asia Pacific’s credit market, with more than a dozen issuers marketing or announcing dollar bonds on Monday.

Korea National Oil Corp. is among the borrowers planning to price a bond on Monday, while Malaysian oil giant Petroliam Nasional Bhd has hired banks for what could be its first dollar issuance in almost four years. South Korean steelmaker Posco Holdings Inc., Philippine restaurant operator Jollibee Foods Corp. and Hong Kong metro operator MTR Corp. Ltd. are among the other issuers working on deals.

They are turning to the bond market before a hotly-anticipated US tariff announcement on April 2, which Trump has referred to as “Liberation Day.” Although the threat of rising tariffs has made investors nervous, it hasn’t been entirely bad news for bond issuers: Treasury yields have fallen as investors weigh up the economic impact, reducing issuers’ overall funding costs, while investment grade bond spreads in Asia remain tight.

“With Treasuries having rallied and credit spreads still near all-time tights, the Asian dollar primary market has sprung to life, with multiple issuers keen to lock in funding ahead of ‘Liberation Day,’” said Mark Reade, head of credit strategy at Mizuho Securities Asia.

Issuers in Asia Pacific have already sold almost $92 billion of dollar bonds so far this quarter, the highest quarterly volume since the first three months of 2022, according to data compiled by Bloomberg.

Trump is planning a series of so-called reciprocal tariffs, hitting countries that impose their own levies on US goods. There are signs the tariffs will be less sprawling than previously feared, but the uncertainty over Trump’s moves has left investors across markets on edge.