ASIA Pacific (APAC) borrowers came out in full force in what’s traditionally one of the busiest periods for bond issuance globally at the start of the year, with at least 14 issuers marketing or announcing plans to sell dollar debt.

The flurry of deals will pose a key test of investor appetite for credit at a time when yield premiums are near their lowest since the global financial crisis. Mitsubishi UFJ Financial Group Inc., China Hongqiao Group Ltd. and Export-Import Bank of India are among borrowers from the region that may price notes at the start of the week.

Companies have plenty of incentives to sell debt early in 2025 with global credit spreads near their lowest in 17 years and investors on alert for more volatility in markets with the return of President-elect Donald Trump to the White House. Preliminary forecasts for high-grade issuance in the US this week were around $50 billion, with mandates continuing to roll in.

At least six borrowers Monday including Japan’s Chugoku Electric Power Co. mandated banks for potential dollar bond sales.

“We’re pretty positive on Asian high yield, Asian credit as a whole,” said Navin Saigal, head of fundamental fixed income, Asia Pacific, at BlackRock Inc., citing restrained supply in the region compared with historical highs and the ability to pick up yields of 6-7 percent on notes.

Concerns that Trump’s policies may reignite inflation have already pushed longer-term US Treasury yields higher and his promise to impose additional tariffs on goods from countries such as China hold the potential to sway investor preferences further in credit markets.

For now, Asia dollar bond spreads have followed their US peers lower as Chinese authorities have increased stimulus to boost their own economy and some other regional central banks have accelerated rate cuts to offset potential risks. Yield premiums on Asian investment-grade dollar bonds finished 2024 at levels near their lowest in at least 15 years, Bloomberg indexes show.