Asian credit: The state of play
The last two years have been the most difficult years on record for Asian high yield bond investors as well as for special situation investors requiring a fundamental change to investment strategies for many. Our panel of leading industry experts and market leaders will discuss the issues that have led to changes and the outlook for Asian credit including:
- How are investments funds adapting to the changed landscape?
- How can Asian credit be made more attractive to investors?
- What is the future of Asian credit?
Networking Coffee Break
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An overview of Chinese debt restructurings
Since 2021, at least 54 Chinese real estate developers have defaulted or have otherwise been engaged in restructurings on a total USD 119.8bn in public bonds across 312 tranches with just slightly more than half having completed some type of restructuring process. This panel of experts will analyse the processes involved in some of the most high-profile restructurings and the quality of their outcomes, including the recoveries to creditors.
- Which restructurings have offered creditors the best outcomes and why?
- What strategies have either failed or otherwise resulted in a poor outcome?
- What are the prospects for resolving most of the defaulted debt in the Chinese real estate sector?
Asia distressed: Finding opportunities amid dislocation
Outside of the Chinese real estate sector, what have been the distressed/special situation opportunities and what is the outlook given prevalent monetary policy and the macroeconomic environment as well as other market dynamics.
- In which countries and in which sectors is distress likely to increase, and why?
- What are the opportunities in the region given the unique characteristics in each geography and structure of markets?
- Apart from central banks policies and the macroeconomic environments what are the market dynamics that could result in pick up in opportunities?
- Will declining asset valuations for private equity investors provide opportunities for special situation investors?
Networking Lunch
Managing complexities in Asian credit
This group of lawyers, financial advisors and creditors explore some of the most important court decisions made in APAC over the last year regarding disputes surrounding debt restructurings, enforcement actions and liquidations and why they matter. This discussion will include an examination of some of the legal strategies and options creditors have in dealing with debtors in difficult jurisdictions.
A realistic look at direct lending in APAC
APAC’s direct lending market is on a growth path that many expect will follow the trajectories of the US and European markets. But given the widely differing legal systems, the dominance of bank lending in the region, as well other unique factors, the growth of direct lending is very uneven in APAC. Where the opportunities exist, increasing competition to lend may lead to less robust loan structures and decreasing returns on investments. Moreover, amid rising interest rates, and an increase in defaults as well as some questionable valuation practices, there is concern the direct lending asset class could deliver less than stellar returns.
- How have private lending funds fared in China, especially those that have exposures to the real estate sector?
- How are LPs able to monitor their investments given the opacity in loan valuations?
- How well equipped are direct lenders to deal with distressed situations, especially in an environment where defaults are on the rise?
- Which jurisdictions offer the best better risk/rewards, and which are the worst?
The India opportunity: Resilience and growth
Many investors view India as a significant growth market opportunity given the demographics, strong resilience to external macro events, and its push to become a more prominent manufacturing centre. Regulatory changes in the last few years should help to improve the insolvency framework and private credit activity has been strong, especially in renewables and property. Our esteemed panel of industry leaders will share the opportunities and challenges investors face in this compelling market.
- What is the current credit landscape?
- Which sectors provide the best opportunities?
- How has the regulatory regime performed? What can be improved?
- What are the key learnings from recent activity?
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