A rush of merger and acquisitions and a new high for the Hang Seng index has led to an unexpected surge in global convertible bond volume, according to Barclays Capital analysts, who predict record issuance for non-Japan Asia this year.

The Hang Seng index, after reaching a new high of 29795.63, buoyed equity-linked sentiment in Asia. Analysts at Barcap said in a weekly convertible bond report: "Secondary markets were very active, driven by local markets in Asia and M&A activity in Europe. The benchmark Middle Eastern sukuk also enjoyed a strong week."