Are Formosa bonds being issued in Taiwan?

The million dollar question in the Asian credit markets have to do with Formosa bonds - for the uneducated here, Formosa was formerly the name of Taiwan, which for the more uneducated is an Island off of China, which for the more uneducated is a country where Mulan took place 🙂

High-grade index spreads are steadily declining, Bank of America Merrill Lynch’s Hans Mikkelsen notes, as a global correlation divergence is at work. In a report titled “Perfect storm=bump on the road,” Mikkelsen looks at the global supply and demand balance and concludes that recent flow of corporate bond supply from Taiwan is likely to be a temporary market influence.

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