Asia high-yield to come under pressure

The region’s high-yield market is likely to underperform as Chinese real estate risks mount and supply fatigue resurfaces in coming weeks.

Asia high-yield to come under pressure

The underperformance of Asia’s high-yield sector in recent weeks is partly due to concerns about the Chinese property industry and worries of more supply in coming weeks, say syndicate bankers.

Asia’s investment grade sector held up last week as spreads grinded around 5bp tighter for Korea, China and Hong Kong. Spreads were overall little changed for India and Southeast Asia, according to Goldman Sachs in a report released on May 5.


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