Trump factor to close Asian bond market

Donald Trump’s against-the-odds triumph in the US presidential election looks set to bring Asia’s bond market grinding to a halt as investors take a step back and funding costs rise.

Trump factor to close Asian bond market

Asian bond markets struggled to process the election of Donald Trump on Wednesday, making a temporary shut-down in new issuance appear all but guaranteed, according to market participants.

Asia’s iTraxx investment grade index whipsawed throughout the day as investors reduced their risks. Liquidity in the secondary bond market dried up to the extent that one banker said it had become “an offer-only” market in the hours before Democratic Party candidate Hillary Clinton conceded.

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