Asian credit spreads to widen in H2: SocGen

13 Aug 2013

Increasing US bond yields and rising leverage throughout the region will wipe out investors’ technical bid for credit by the end of this year, leading to the widening of spreads, says the bank.

The region’s gloomy fundamental outlook brought about by increasing net debt positions as well as rising rates on US government bonds is likely to affect investor demand for the extra yield that corporate bonds offer.

July and the early part of August have been good for the Asian dollar-denominated ...

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