$45 Billion Wiped Out Mostly From Asia Bonds, BondEvalue Says
- Wealthy investors saw ‘great losses’ in leveraged positions
- Bid-ask spreads widened for junk bonds, BondEvalue says
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Rising Treasury yields, trade-war concerns and Chinese defaults have wiped out $45 billion since the start of the year in the market value of dollar notes sold by Asian and international borrowers, according to Singapore-based BondEvalue.
“High net-worth investors not only saw great losses in their leveraged positions, but also faced difficulties in selling off bonds to cut their losses,” said the firm, which provides bond services to private banks, in a note released earlier this week.