Investors pile into bonds sold by smaller firms

FED up with low interest rates, investors are snapping up bonds sold by smaller companies and some analysts are cautioning investors not to lose sight of credit quality amid the rush to debt.

The enthusiastic response from investors to recent bond issuances by mid- and small-cap companies such as Aspial, Ezion, Swiber and Heeton has resulted in them being several times subscribed.

It has also led to longer term tenors, such as five years and more, which had been the preserve of blue- chip issuances, instead of the two to three years many had to be content with previously.