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Capital regulation adds risk as Asia debt safety net decays

Stringent requirements force global banks to pull back, draining away liquidity from CDS market

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Kaisa's bond maturing in June 2015 has swung wildly in price since December in an extreme range of 20 to 90 cents on the US dollar, in an often-illiquid secondary market.

Hong Kong

DEBT crises and heavy trading losses at some Asia-Pacific companies have exposed cracks in the region's corporate debt market - suggesting a regulatory push to make the global financial system safer could unintentionally be having the opposite effect.

While primary bond...

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