Asian Junk Bonds Underperform as Iran War Exposes Oil Dependence

Asian high-yield dollar bonds are getting disproportionately hit compared with global peers as the escalating Iran conflict underscores the region’s reliance on imported energy, in sharp contrast with the US.

Average yield premiums on junk-rated dollar notes from Asian issuers, including corporates and governments, widened 16 basis points so far this week, a Bloomberg index shows, and were little changed Friday. That compares with a decline in spreads on comparable debt from issuers in a global index and from the US, a net exporter of gas and petroleum.