In May 2024, the new default value increased with the coupon default of a bond from an issuer of Sunshine Group. The cumulative default rate was 16.1% at the end of May 2024 increased by 1% compared to the end of 2023. We estimate the value of new bonds-at-risk will be at a low level at VND 6.9 trillion in June 2024 compared to the average monthly value of bond defaults of VND 12.3 trillion in 2023. New issuance in April 2024 reached VND 28 trillion, higher than the value of VND 19.2 trillion in March 2024. Over the last five months, new issuances amounted to VND 67.1 trillion, 93% higher than last year. Market turnover increased in May 2024 compared to the prior month signals improving liquidity, driven primarily by bank and real estate bonds trading.
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