The $15 Billion Reason Why Asia Bond Defaults Could Rise
- Firms face large debt payments on stressed notes due next year
- Double Haven sees ‘more stress’ in Asia dollar bonds
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From Chinese conglomerates to coal miners in Indonesia, companies in Asia are facing rising financial stress, prompting fears defaults will pick up next year.
Weaker regional borrowers with dollar bonds yielding at least 15% could come under further pressure next year, when they have about $15.1 billion or nearly a third of such debt due, according to Bloomberg-compiled data. Amid rising failures in China, some firms are finding it harder to refinance their debt offshore, while Indian shadow lenders are grappling with a liquidity crunch.