Following the deregulation of Taiwan’s Formosa bond market in mid-January, a number of issuers have seized the opportunity to tap this market, with its abundant dollar liquidity and strong local demand. Qatar National Bank and Abu Dhabi Commercial Bank issued dollar bonds in Taiwan immediately after the policies changes. Formosa bond terms are generally less favorable now for investors than for issuers. AT&T Inc. and Verizon Communications Inc. have led a sale of more than $14 billion of so-called Formosa bonds, dollar debt listed in Taiwan, this year. Hedging the risks for these long-maturity A Formosa bond (Chinese: 福爾摩莎債券; Pe̍h-ōe-jī: Hok-ní-mô͘-sá Chè-kǹg) is a bond issued in Taiwan but denominated in a currency other than the New Taiwan Dollar. They are issued by the Taiwan branches of publicly traded overseas financial institutions and to be traded must have a credit rating of BBB or higher. Taiwanese players keenly embraced Formosa bonds as they looked to increase yields from investment portfolios. The notes were listed in Taiwan but were dollar-denominated, and allowed insurers to pad their domestic portfolios while helping more institutions issue the bonds. Taiwan lifers facing possible Formosa bond cap By including Formosa bonds as overseas investments, the island's financial regulator could put limits on life insurer buying in order to encourage more investment at home. After a record year of activity in 2018 in the country’s so-called Formosa bond market, following a series of moves to open it up to a widen pool of investors through looser regulation, we expect 2019 to herald a turnaround in fortunes with a slowdown in activity once more as a new measure to limit the activities of local insurance companies in the offshore bond market is introduced.
Taiwan's Formosa bond market was rejuvenated following the deregulation in mid-January. Market participants expect Taiwan to become the next go-to place
19 Sep 2019 calls on as much as US$60bn of Taiwanese Formosa bonds over the Taiwan has been a popular port of call for such issuers ever since the The term Formosa bond refers to an indenture issued in Taiwan, in a non-New Taiwan dollar denomination, by a foreign bank or corporation. Formosa bonds 15 Jan 2020 At least $17.4 billion from Formosa bonds -- securities listed in Taiwan but denominated mainly in dollars -- were called or will be repaid early 18 Feb 2020 A flood of fund raising by American blue-chip firms in Taiwan is putting Record redemptions suggest wave of Formosa bond sales ahead. 12 Feb 2017 SINGAPORE, Feb 13 (IFR) - Three US blue chips headed to Taiwan's Formosa bond market last week in a rush to lock in flexible funding 9 Mar 2020 To widen the investor base, Formosa bonds can also be listed on overseas exchanges and may be traded over-the-counter between bond 16 Jan 2020 Formosa bonds are sold in Taiwan by foreign borrowers and are denominated in currencies other than the Taiwanese dollar. Morgan Stanley
The clampdown follows a surge in Taiwan-targeted debt offerings from overseas entities, with firms from Goldman Sachs to Air Liquide issuing Formosa bonds in recent months.
A Formosa bond (Chinese: 福爾摩莎債券; Pe̍h-ōe-jī: Hok-ní-mô͘-sá Chè-kǹg) is a bond issued in Taiwan but denominated in a currency other than the New Taiwan Dollar. They are issued by the Taiwan branches of publicly traded overseas financial institutions and to be traded must have a credit rating of BBB or higher. AT&T Inc. and Verizon Communications Inc. have led a sale of more than $14 billion of so-called Formosa bonds, dollar debt listed in Taiwan, this year. Hedging the risks for these long-maturity The Formosa market relies heavily on local life insurers, and foreign issuance has rocketed since 2014, when Taiwan’s Financial Services Commission reclassified Formosa bonds as domestic debt. Taiwan could be the next go-to place for dollar funding for bond issuers, after authorities loosened regulations on debt issuance. The government expanded from this month the roster of issuers that can sell Formosa bonds without prior approval, to all units of lenders listed on bourses
15 Jan 2020 At least $17.4 billion from Formosa bonds -- securities listed in Taiwan but denominated mainly in dollars -- were called or will be repaid early
Formosa bonds seem to be a good fit for Taiwan’s life insurers: The bonds must be rated triple-B or higher, and yields lately are topping 4%. Indeed, Taiwanese life insurers, with more than US$600 billion in assets, own about 80% of outstanding Formosa bonds. Following the deregulation of Taiwan’s Formosa bond market in mid-January, a number of issuers have seized the opportunity to tap this market, with its abundant dollar liquidity and strong local demand. Qatar National Bank and Abu Dhabi Commercial Bank issued dollar bonds in Taiwan immediately after the policies changes. Formosa bond terms are generally less favorable now for investors than for issuers. AT&T Inc. and Verizon Communications Inc. have led a sale of more than $14 billion of so-called Formosa bonds, dollar debt listed in Taiwan, this year. Hedging the risks for these long-maturity A Formosa bond (Chinese: 福爾摩莎債券; Pe̍h-ōe-jī: Hok-ní-mô͘-sá Chè-kǹg) is a bond issued in Taiwan but denominated in a currency other than the New Taiwan Dollar. They are issued by the Taiwan branches of publicly traded overseas financial institutions and to be traded must have a credit rating of BBB or higher. Taiwanese players keenly embraced Formosa bonds as they looked to increase yields from investment portfolios. The notes were listed in Taiwan but were dollar-denominated, and allowed insurers to pad their domestic portfolios while helping more institutions issue the bonds. Taiwan lifers facing possible Formosa bond cap By including Formosa bonds as overseas investments, the island's financial regulator could put limits on life insurer buying in order to encourage more investment at home.
Formosa bonds seem to be a good fit for Taiwan’s life insurers: The bonds must be rated triple-B or higher, and yields lately are topping 4%. Indeed, Taiwanese life insurers, with more than US$600 billion in assets, own about 80% of outstanding Formosa bonds.
12 Feb 2017 SINGAPORE, Feb 13 (IFR) - Three US blue chips headed to Taiwan's Formosa bond market last week in a rush to lock in flexible funding 9 Mar 2020 To widen the investor base, Formosa bonds can also be listed on overseas exchanges and may be traded over-the-counter between bond 16 Jan 2020 Formosa bonds are sold in Taiwan by foreign borrowers and are denominated in currencies other than the Taiwanese dollar. Morgan Stanley Formosa swaptions trade under pressure from new Taiwan rules. Limit on investment by insurers is hitting issuance of Formosa bonds and related options. 25 Jan 2019 Yuanta Securities Investment Trust Co., the largest ETF provider in Taiwan, launched the island state's first Formosa bond ETF in 2015. Market 24 Feb 2020 Their buying of Taiwanese debt in the past few years has focused on bond exchange-traded funds (ETFs) and so-called Formosa bonds,