Uncertainty Overshadows Global Bond Issuance Plan

The interest rate cuts by several central banks might spur the issuance of bonds, either from government and corporations, and global bonds. However, global economic uncertainty persists in the wake of negative sentiment from the US-China trade war, though it has slightly subsided. Thus, investors are seeking more save haven assets such as gold, Japanese yen, or US dollars. Gold bullions, for example, increased 0.24 percent to US$ 1,506.8 per troy ounce as of Wednesday (9/18).

Besides considering the prolonged global uncertainty, investors could also consider the track record and business prospects of global bond-issuing companies. If a company's business is exposed to global negative sentiment, or its sector is under an unfavorable condition, investors are less likely interested in the issued global bonds.