Pimco: Asia debt at risk as dollar bond sales hit record
Issuance surges 66 per cent year-on-year in last quarter to US$152 billion as investors search for yield
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Hong Kong
PACIFIC Investment Management Co (Pimco) is wary of the risks of rising debt levels after sales of dollar bonds by borrowers in the Asia-Pacific region ballooned to a record.
Issuance surged 66 per cent in last quarter from the year earlier to US$152 billion, according to data compiled by Bloomberg. Borrowers have rushed to lock in lower financing costs as the average yield premium on the securities has fallen 72 basis points this year to 206, near the lowest since 2007, according to Bank of America Merrill Lynch indexes. Zhuzhou City Construction Development Group Co, a local-government financing vehicle, starts investor meetings in Singapore, Hong Kong and London from Tuesday, a person familiar with the matter said.
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