asian-banks-safe-but-investors-remain-nervous

Asian banks safe but investors remain nervous

MoodyÆs says the US sub-prime exposure of Asian banks is limited. Nonetheless, investor nervousness causes one high-yield bond issue to be postponed.
Asian bonds dropped steeply again yesterday, as risk aversion spiked due to more fears about the US sub-prime crisis. This follows weak US labour data on Friday and more mortgage-related rating actions that spurred a sharp rally in US Treasuries. According to a BNP Paribas report released Monday, the yield curve steepened 8bp on the day to 27bp as the futures market priced in higher odds of a Fed rate cut.

Today, the US Federal Reserve will announce its assessment on the health of the countryÆs economy, and review interest rates.

This heightened risk-aversion comes despite MoodyÆs announcement on Friday that the fallout among Asia's investment and universal banks due to the US sub-prime mortgage...
¬ Haymarket Media Limited. All rights reserved.

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 5 articles from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222

Article limit is reached.

Hello! You have used up all of your free articles on FinanceAsia.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences. To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222