Record Company Debt Binge in South Korea Shows Signs of Slowing
- Firms loaded up on cash recently as they brace for rate hikes
- But local company note sales fell about 33% so far this month
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A record debt binge in South Korea may be nearing an end, a development that could bring more normalcy to a market that like many globally has been swayed by unprecedented stimulus since the pandemic.
Sales of won-denominated corporate notes have decreased 33% this month compared with the same period at the beginning of June. While that’s just one data point for a relatively short period, market participants say a slowdown may be sustained.