Asia's $184 Billion Debt Wall to Spark Buybacks, Bond Swaps

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Asian borrowers faced with rising refinancing needs are expected to actively engage bondholders ahead of debt maturities as they look to stave off default risks, Bloomberg News reported. That means getting investors to agree to discounted buybacks and maturity extensions, so-called liability management deals that can help firms cut funding costs. More issuers are in talks with their legal advisers to reassess their future financing arrangements and capital structures because of an uncertain primary market, according to law firm Linklaters LLP. "Liability management actions, whether these be tender offers, exchange offers or consent solicitations, have the best chance of success if they are launched early," said James Warboys, R&I and special situation partner at Linklaters. "Timing is critical and issuers in distress can negotiate a better deal with investors than those who wait for an imminent default." Read more.