How private-bank clients dumbed down Asia's bond market

AN undesirable side effect of the growth of private banking in Asia has been the dumbing down of bond investing. What in the US and Europe is still the preserve of sophisticated institutional investors has, in the East, morphed into a playground for the careless rich.

The neophytes are panicking. Some are getting crash courses in creditor rights on WhatsApp message groups. Bankers, meanwhile, say that they would welcome more scrutiny by credit rating agencies. Never mind that they got rebates of as much as one per cent as an incentive to sell unrated securities. Worse, this side payment from issuers generall…