Capital regulation adds risk as Asia debt safety net decays
Stringent requirements force global banks to pull back, draining away liquidity from CDS market
Tue, Mar 24, 2015 - 5:50 AM
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.
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.