Fixed Income
Credit-Market Rebound Leaves Korea’s Weaker Firms Lagging Behind
- KB’s Joo said investors remain cautious about low-rated firms
- Spread between AAA and A- Korean company bonds has surged
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Lower-rated won corporate notes have lagged the rebound in high-grade peers after South Korea’s credit rout, a trend that may continue on concerns about an economic slowdown.
That’s the view of Joo Tae-young, a senior managing director who heads the corporate finance division of KB Securities Co., Korea’s top arranger of local debt. The property sector’s uncertain outlook is also making investors cautious about weaker credits, especially those related to the construction industry, he said in an interview.