Bond default rates are increasing worldwide, but especially in Asia-Pacific because of the impact of the real estate crisis in China.
The defaults are for bonds across all classes of credit ratings, with the average time to default for Asia-Pacific bonds taking place more than twice as quickly as bonds at the global level.
According to a joint study conducted by the Federation of Thai Capital Market Organizations (Fetco) and the Capital Market Development Fund (CMDF), debenture default rates are increasing globally, signalling a potential crisis.
The real estate crisis in China has affected debt instruments across the region. The average time to default has rapidly accelerated.
The defaults are occurring even though bonds in Asia have a better credit rating than those issued in other regions.
“Investors are concerned as bond default rates are rising…
