Subprime bark worse than its bite

Listed institutional investors such as insurance companies and commercial banks have seen their stocks pummelled but there is little evidence to support bears' worries.

Fears that Asian financials were the predominant buyers of the riskiest subprime assets are unfounded, according to banking and credit strategists. In a flurry of research reports they have been arguing that the effect on the regionÆs institutional investors including banks and insurers will be manageable and that the sell-off is overdone.

ôFundamentally Asia has quite limited exposure to US subprime,ö says Deborah Schuler, a credit analyst at MoodyÆs, which has so far taken no action on any Asian financials....

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