Asia Tech & New Economy

Asian technology and communications issuers.

Asia's technology and communications issuers offer a rare combination of growth exposure and high running yield, spanning an investmentgrade anchor in Hong Kong telecom to highyield new economy credits in Japan. This theme screens ten bonds, and nearly all of them are issued by a single Japanese group, so issuer concentration is the central risk to weigh. SoftBank's 8.25% 2031 notes yield 9.73% at a BB+ rating, a meaningful pickup for a roughly fiveyear maturity from a credit in the same rating band. The 8.5% 2036 notes offer 9.155% at BB+, so the curve offers a moderate term premium without stretching into lowerrated paper. Longer and lowerrated tranches push yields higher: the 8.25% 2065 notes at B+ yield 9.855%, and the 7.625% 2061 notes yield 9.537%. The extra spread compensates for duration and downgrade risk, so investors should size these positions with the issuer's leverage profile in mind. HKT's zerocoupon 2030 bond is the sector's only BBBrated name, but its 22.8% screen yield looks anomalous given the zero coupon and a price above par. Verify that figure before using it in any relativevalue comparison.

Results are limited to USD bonds with an amount outstanding of at least USD 200MM.