Chinese Banks’ Bond Risk Rises Most in Asia Amid Moody’s Warning
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Bank of China Ltd., Export-Import Bank of China and China Development Bank Corp. led gains in Asian bond risk last week as Moody’s Investors Service and Standard & Poor’s warn credit curbs threaten some lenders.
Prices of swaps tied to Bank of China, the nation’s fourth-largest lender, rose 70.4 basis points last week to 192.4, the biggest increase among members of the Markit iTraxx Asia index of 40 investment-grade borrowers outside Japan, according to data provider CMA. The cost of insuring Asian corporate and sovereign bonds from default surged 27.6 basis points last week, the most since November 2011, CMA prices show.