The year has seen a significant increase in corporate bond sales, with an upward trend over the past few months. However, there has also been a sharp decline in the amount of bonds bought back before maturity. Could this be a sign of strong recovery in the corporate bond market? A surge in bond issues Corporate bond sales surged in June, totaling VND42,147 billion. This marks a 40% increase compared to May and doubles the volume issued in April, with 30 private placements worth VND40,147 billion and three public offerings totaling VND2 trillion. June was the fourth consecutive month of growth in bond issuance this year. According to the Vietnam Bond Market Association (VBMA), the total debt sales in the first half of 2024 totaled VND115,487 billion, nearly 2.7 times the value issued in the same period in 2023. Private placements dominated with 102 issues worth VND104,109 billion, while public offerings accounted for merely 10 issues valued at VND11,378 billion. With fewer early redemptions and a steady increase in bond issues over recent months, this trend points towards a market recovery. VBMA data showed that early redemptions in June were VND11,336 billion, plunging 69% compared to the same period last […]
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