Junk Debt in Southeast Asia Loses Most Since 2020 as Risks Mount
- Asean high-yield corporate debt index lost 6% in October
- Borrowing costs for junk issuers more than doubled this year
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High-yield corporate bonds in Southeast Asia suffered their biggest monthly blow in more than two years in October, as recession risks and higher rates put pressure on their finances.
The Bloomberg index for the region’s junk corporate dollar debt are set to have lost 6% in October, underperforming a gauge that includes both investment and speculative-grade bonds in the region. That’s the biggest monthly drop in returns since March 2020, if the losses through Oct. 28 hold.