Cautious outlook on Asia credit

China’s worsening borrowing conditions could prompt a rise in bond supply and corporate defaults, threatening the credit profiles of local companies, says Morgan Stanley.

Viktor Hjort, Asia head of credit research and strategy at Morgan Stanley, gives FinanceAsia a rundown of some of the key themes that will drive Asia's credit markets this year.

The US banking giant’s infrastructure arm has agreed to acquire the Australian gas pipeline operator. In another deal, Aberdeen Investments and ACCIONA have set-up a SPV for a New Zealand motorway project.

Anders Svensson is joining the bank in Sydney from Morgan Stanley.

Off-balance sheet income is driving global banks’ Q3 earnings, a McKinsey report has found, but to sustain growth momentum, Asia’s institutions will need to overhaul inefficiencies.

The five-year outlook for Asia remains positive provided the region heeds the lessons learned in the US and moves towards opening up onshore markets to offshore investors, say panellists.