Credit Markets Get a Jolt From Property Losses at Banks
- Aozora Bank’s bond spread has more than doubled in two days
- Goldman Sachs urges investors add hedges to credit portfolios
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Global credit spreads are heading for the biggest weekly increase in four months as bubbling property market stresses prompt banks to increase bad-loan provisions.
Spreads on corporate bonds globally have widened eight basis points since last Friday, the biggest weekly jump since early October, while those on investment-grade financial bonds have risen seven basis points, Bloomberg indexes showed. Spreads on bonds issued by Asian lenders are about one basis point higher on average Friday.