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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

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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