In today’s briefing:
- Sri Lanka Defaults on Debt: South Korea Is the Biggest Investor & Domino Effect on Other Countries?
- Yields in Asia Are Far from the Peak – Part II
- CX Daily: Localities Push Ahead With Personal Bankruptcy Pilots as National Efforts Stall
- CX Daily: China Eases Covid-19 Test Rules for Air Travelers From More Countries
Sri Lanka Defaults on Debt: South Korea Is the Biggest Investor & Domino Effect on Other Countries?
- Sri Lanka defaulted on its debt for the first time in its history.
- South Korea is the biggest investor in Sri Lanka. About 20% of foreign companies entering Sri Lanka are Korean companies.
- Other emerging/frontier market countries including Turkey, Pakistan, South Africa, Russia, Ukraine, Belarus, El Salvador, Lebanon, Ethiopia, Ghana, Kenya, Egypt, Tunisia and Peru also face potential debt defaults.
Yields in Asia Are Far from the Peak – Part II
- Even as the US 10y yield has come off the peak, rates in emerging markets – including in Asia – have been selling off as they remain under pressure.
- Rates in Asia are vulnerable as they are expensive vis-à-vis the rest of EM, rising inflation should result in further rate hikes in the region, and debt profiles have deteriorated.
- I thus expect rates in Asia to underperform and prefer selling bonds in the region paired with long bond positions in countries in other regions.
CX Daily: Localities Push Ahead With Personal Bankruptcy Pilots as National Efforts Stall
In Depth: Localities push ahead with personal bankruptcy pilots as national efforts stall
China’s tax revenue sinks amid rollout of new VAT refund policy
Three tough-to-crack housing markets relax homebuying controls
CX Daily: China Eases Covid-19 Test Rules for Air Travelers From More Countries
China eases Covid-19 test rules for air travelers from more countries
Global investors continue to dump yuan bonds as Treasurys, dollar rise
Chinese President Xi Jinping pledges to open door wider to world
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