As such, OCBC Bank is expecting bond defaults around the world to rise, following the Covid-19 outbreak, which has impacted even “traditionally recession proof sectors” such as telecommunications, healthcare, and retail REITs.
SINGAPORE (July 8): In 1H20, total issuances in the bond market fell to 39 issues and an issuance amount of $8.3 billion, compared to the 56 issues and record issuance amount of $15.4 billion in 1H19.
The significant drop in the number of issues and issuance size were mainly driven by market volatility and a weaker operating environment brought about by the global outbreak of COVID-19, says OCBC’s credit research team, Andrew Wong, Ezien Hoo, Wong Hong Wei, and Seow Zhi Qi in a report dated July 4.
