Cautious outlook on Asia credit

Asia credit is likely to experience more headwinds for the rest of the year, boosting appetite for quality names, says Morgan Stanley.

Looming headwinds are likely to challenge the Asia credit space during the remaining months of the year, encouraging investors to move up the credit curve.

Deteriorating cash generation, tougher borrowing conditions in addition to already leveraged balance sheets open up a new downside for Asian credit, according to Morgan Stanley in a research note on March 18. This is especially true for the high-yield sector.

“We are cautious and view this as a decompression environment,” said Viktor Hjort, credit analyst at Morgan Stanley, in a telephone conference call on Tuesday. “The environment for global credit is still reasonably benign and better than it is in Asia, and...

¬ 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