Investors should brace for more Asia debt downgrades
Moody’s and fund managers believe further debt downgrades are an inevitability as Covid-19’s impact continues. China could offer both strong investments and potential defaulters.
The ongoing impact of the Covid-19 pandemic is set to see continued elevated levels of bond defaults in Asia and other parts of the world, which leaves investors with a need to be cautious – even as rate cuts cause overall bond returns to fall.
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